Michigan Mortgage and Refinance Rates

Current mortgage rates in Michigan

As of Monday, May 19, 2025, current interest rates in Michigan are 6.90% for a 30-year fixed mortgage and 6.14% for a 15-year fixed mortgage.

Mortgage rates began the year over 7 percent after rising for several months despite three consecutive rate cuts by the Federal Reserve last year. While mortgage rates are difficult to predict and change frequently, many experts believe rates will hover in the mid-6 percent range for much of 2025.

Refinance rates in Michigan

Michigan refinance rates, as well as those nationally, are higher than historic lows during the pandemic. However, that hasn’t stopped many Michigan homeowners from refinancing their loans. In January 2025, there were 7,128 new mortgage refinance loans, according to ATTOM data. That’s a 44 percent increase year over year.

If mortgage refinance rates come down further in the remainder of 2025, it could be a good opportunity for Michigan homeowners to lock in a more favorable interest rate, especially for those who purchased a home at the height of the market.

In addition, if you've had your home for a while, you may have a large amount of equity built up. You can use a cash-out refinance to leverage that equity to accomplish other goals, such as a home renovation project.

National mortgage rates by loan type

As you compare your options for the right mortgage to finance your home purchase, Bankrate’s data can help you look at how any lender offers you receive stack up against national averages.

Michigan mortgage rate housing market statistics and trends

Here’s a look at some data to help inform your search for the right home in Michigan:

• Most affordable counties, January 2025: Baraga, Clare, Gogebic, Iron, Lake, Luce, Ontonagon, Oscoda
• Median home sales price, January 2025: $237,500
• Median down payment, January 2025: $24,500
• Homeownership rate, Q4 2024: 76.4%

Sources: ATTOM, U.S. Census Bureau

Mortgage rates in Michigan and nationwide fluctuated for much of 2024 before hitting a high above 7 percent to end the year. Rates have dipped slightly since then, but amid economic uncertainty and volatile markets, it's difficult to predict where rates will go from here. However, they'll likely stay between 6 and 7 percent for the remainder of 2025. Higher mortgage rates and home prices mean that affordability is still a challenge for many aspiring Michigan homeowners.

Mortgage options in Michigan

If you’re looking to get a mortgage in Michigan, explore these options:

• Michigan conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum 620 credit score and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well. 
• Michigan FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Michigan VA loans: If you’re a veteran or active-duty member of the military with full entitlement, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers obtaining a VA loan for the first time.
• Michigan USDA loans: If you’re a low- to moderate-income buyer who is planning to look for property in a qualifying rural area, loans backed by the United States Department of Agriculture can be worth a look. Fewer lenders offer these loans, but if you can find one, you may be able to score significantly lower mortgage rates.
• Michigan jumbo loans: While Michigan median sales prices are lower than the national average, there are still plenty of high-end properties available in the state — particularly in lakefront areas. If you’re looking to buy a property that exceeds the conforming loan limit, you’ll need to compare jumbo mortgage lenders and be prepared to make a down payment of at least 10 percent.

First-time homebuyer programs in Michigan

The state of Michigan offers mortgage options and first-time homebuyer assistance programs to help make homeownership more affordable.

• MI Home Loan program: The Michigan State Housing Development Authority connects first-time homebuyers, or those who haven’t owned a home in the past three years, with lenders participating in certain lower-cost mortgage programs. This includes the MI Home Loan, available to both first-time homebuyers throughout the state and repeat buyers in targeted areas. The program includes down payment assistance of up to $10,000. To qualify, you’ll need a minimum 640 credit score, and your household’s income can’t exceed certain limits.

How to find the best mortgage rate in Michigan

When shopping for a mortgage, be sure to compare several different lenders— research shows this exercise can save you thousands of dollars over the life of a loan. It’s also helpful to read lender reviews for your state.

Additional Michigan mortgage resources

• Michigan loan limits by county: Learn the FHA and conventional loan limits by county for Michigan.
• Michigan mortgage lenders: Compare these Michigan mortgage lenders.
• Mortgage calculator: Estimate your monthly payments based on principal and interest costs. Don’t forget to budget more for other homeownership costs, including property taxes and homeowners insurance.
• Best Michigan homeowners insurance companies: Shop homeowners insurance policies to get the right plan for you.
• How to buy a house in Michigan: Read up on what it takes to buy a house in The Great Lakes State.
• Michigan housing market: Here’s everything you need to know about the residential real estate scene.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards