Michigan mortgage calculator
Use our free mortgage calculator to estimate your monthly mortgage payment, includi...ng your principal and interest, taxes, insurance, and PMI in Michigan. See how your monthly payment changes by making updates to your home price, down payment, interest rate, and loan term.
Michigan housing market
Michigan, the Great Lakes State, remains affordable as the median homeowner spent j...ust over 18% of their income on their home -- well below the national average. Michigan experienced rapid growth in housing prices, with the average home value jumping 9.3% in 2018 alone, although signs point towards a slowdown in 2019. When buying a home in Michigan, get ready to move quickly as the average home was on the market for less than a month on average in 2017, in part due to the proliferation of house flipping in the state.
Total principal: $240,000
30 year fixedYour input
|15 year fixed||30 year fixed|
|Total interest paid|
30 year fixedYour input
|15 year fixed||30 year fixed|
|Total interest paid|
See how your payments change over time for your 30 year fixed loan term
At year 0
30 year fixed loan term
- Principal Paid
- Interest Paid
We’ll share an interesting insight here for key milestones in your payoff schedule.
Know how much you qualify for. Based on your inputs, we recommend the following lenders:
Michigan mortgage and refinance rates today (APR)
Current rates in Michigan are 3.67% for a 30-year fixed, 3.152% for a 15-year fixed, and 3.622% for a 5/1 adjustable-rate mortgage (ARM).
Find top real estate agents in Michigan
Start building your winning home buying team! Our partner, HomeLight, analyzes millions of home sales to identify the best performing agent.
Michigan's first-time home buyer programs
The Michigan State Housing Development Authority offers several loan programs to help qualified first-time home buyers get a mortgage.
MI Home Loan Flex
Low down payment
What you need to know
The MI Home Loan Flex program is, true to its name, a little more flexible than the MI Home Loan program in a couple of ways: * It’s for first-time and repeat home buyers statewide. * It doesn’t require all adults who intend to live in the home to apply for and qualify for a mortgage. The Flex...
Michigan's best mortgage lenders
NerdWallet has done the work for you to pick the best financing partner for you in Michigan.
Average property tax in Michigan counties
Taking U.S. Census data, NerdWallet has crunched the numbers to help you understand what property tax rate you can expect to pay on your future home in Michigan. Because assessed values aren’t frequently updated, you may pay a higher rate at first but eventually you’ll pay a similar rate.
|County||Avg. property tax rate||Avg. home value|
|Grand Traverse County||1.09%||$198,000|
|Presque Isle County||1.04%||$97,800|
|St. Clair County||1.25%||$154,900|
|St. Joseph County||1.19%||$111,200|
|Van Buren County||1.36%||$136,200|
Source: American Communities Survey 2016, U.S. Census
What’s included in a mortgage loan calculator?
A mortgage calculator used to look kind of like your grandfather’s cell phone. A bunch of buttons, a little screen and a lot of punching in numbers to get a result. The NerdWallet home mortgage calculator is different. It can calculate your monthly mortgage payment in no time.
Any good home mortgage calculator can do that. Even that big calculator stuffed in your grandpa’s shirt pocket. But an excellent mortgage payment calculator can do more. That’s why the NerdWallet monthly mortgage payment calculator also takes into account the additional costs — like taxes and insurance — that are included in your monthly payment. It’s called a PITI mortgage calculator, for principal, interest, taxes and insurance. We can also include HOA dues and PMI — private mortgage insurance — in your monthly payment calculation.
A lot of folks forget to include all those costs and are frankly a bit surprised when their monthly mortgage payment turns out to be a lot more than they counted on. The formula working behind the curtain of the NerdWallet mortgage calculator takes that bit of uncertainty out of the picture.
How to calculate your mortgage payment
For the paper and pencil mathletes out there, the mortgage payment calculation looks like this:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
The variables are as follows:
- M = monthly mortgage payment
- P = the principal amount
- i = your monthly interest rate. Your lender likely lists interest rates as an annual figure, so you’ll need to divide by 12, for each month of the year. So, if your rate is 5%, then the monthly rate will look like this: 0.05/12 = 0.004167.
- n = the number of payments over the life of the loan. If you take out a 30-year fixed rate mortgage, this means: n = 30 years x 12 months per year, or 360 payments.
How to use a mortgage payment calculator
Determining what your monthly house payment will be is an important part of the “how much house can I afford?” decision. That monthly payment is likely to be the biggest part of your living overhead.
Using this tool to calculate your mortgage payment can help you run various scenarios in your decision process for buying a home. You may consider:
- How long of a home loan term is right for you? A 30-year fixed-rate mortgage will lower your monthly payment, but you’ll pay more interest over the life of the loan. A 15-year fixed-rate mortgage can reduce the total interest you’ll pay, but your monthly payment will be higher. Regardless of which term you choose, fixed-rate mortgages have interest rates that are locked in for the life of the loan.
- Is an ARM a good option? Adjustable-rate mortgages start with a “teaser” interest rate, and then the loan rate changes — higher or lower — over time. A 5/1 ARM can be a good choice, particularly if you plan on being in a home for just a few years or so. You’ll want to be aware of how much your monthly mortgage payment can change, especially if interest rates are trending higher.
- If you’re buying too much home. The NerdWallet mortgage payment calculator can help you take a reality check on just how much home you can afford, especially when considering your all-in costs, including taxes, insurance and PMI.
- Are you putting enough money down? With minimum down payments commonly as low as 3% these days, it’s easier than ever to put just a little money down. The mortgage payment calculator can help you decide what the best down payment for you may be.
What are the monthly costs built into a monthly mortgage payment?
If your mortgage payment included just principal and interest, you could use a bare-bones mortgage calculator. But that’s rarely the case these days. There are a lot of costs that can be built into a monthly mortgage payment. Here are the five key components in play when you calculate mortgage payments:
- Principal: Typically, this would be the home’s purchase price, less any down payment It’s the amount you borrow. If you’re buying a $500,000 home and put down $100,000, the principal would be $400,000.
- Interest: What the lender charges you to loan you the money. Interest rates are expressed as an annual percentage.
- Property taxes: The annual tax assessed by a government authority on your home and land.
- Mortgage insurance: If your down payment is less than 20% of the home’s purchase price, you’ll likely pay mortgage insurance. It protects the lender’s interest in case a borrower defaults on a mortgage. Once the equity in your property increases to 20%, the mortgage insurance is canceled, unless you have an FHA loan.
- Homeowners association (HOA) fee: This is paid by homeowners to an organization that assists with upkeep, property improvements and shared amenities.
Can I lower my monthly payment?
This is where a mortgage calculator can really bring some clarity to the home buying process: by helping you to work different payment scenarios.
Here are ways you can lower your monthly payment:
- Extend the number of years for the loan. It’s called the loan term, something we mentioned above. As we said, your payment will be lower but you’ll be paying a lot more interest over the added years. Review your amortization schedule to see the impact of extending your loan.
- Buy less house. Obviously, taking out a smaller loan means a smaller monthly mortgage payment.
- Avoid paying PMI. By putting down 20% or more, you won’t have to pay private mortgage insurance. That can be another option to consider as you run “what ifs” in the mortgage calculator tool. However, if you’re looking at FHA loans, mortgage insurance can last for the entire length of the loan.
- Get a better interest rate. Putting more money down not only can eliminate PMI, but lower your interest rate, too. That means a lower monthly mortgage payment. Shopping at least three lenders can also increase your odds of getting a better mortgage interest rate.
Can my monthly payment go up?
Now, you’ve calculated your monthly mortgage payment and you’ve got a number you’re happy with. What could make your payment go up from there:
- If you have an adjustable-rate mortgage, as we mentioned above.
- If costs included in your mortgage payment, such as property taxes or homeowners insurance premiums, go up. And they will, eventually.
- If your mortgage loan servicer charges a late payment fee.
Mortgage calculator by state
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