Michigan mortgage calculatorUse 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 marketMichigan, 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.
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Know how much you qualify for. Based on your inputs, we recommend the following lenders:
Michigan mortgage and refinance rates today (APR)
|30-year fixed-rate FHA||2.438%||3.175%|
|30-year fixed-rate VA||2.557%||2.851%|
Today’s mortgage rates in Michigan are 3.034% for a 30-year fixed, 2.183% for a 15-year fixed, and 3.049% for a 5/1 adjustable-rate mortgage (ARM).
Getting ready to buy a home? We’ll find you a highly rated lender in just a few minutes.
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Michigan's first-time home buyer programsThe 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. And it doesn’t require all adults who intend to live in the home to apply for and qualify for a mortgage. But the Flex...
Michigan's best mortgage lendersNerdWallet has done the work for you to pick the best financing partner for you in Michigan.See full article
Average property tax in Michigan countiesTaking 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|
How to calculate a mortgage payment
Formula for calculating a mortgage payment
- 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 a mortgage calculator helps you
- The home loan term length that’s right for you. 30-year fixed-rate mortgage lower your monthly payment, but you’ll pay more interest over the life of the loan. A 15-year fixed-rate mortgage reduce the total interest you'll pay, but your monthly payment will be higher. c
- If an ARM is 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. You’ll want to be aware of how much your monthly mortgage payment can change when the introductory rate expires, especially if interest rates are trending higher.
- If you’re buying too much home. The mortgage payment calculator can give you a reality check on how much you can expect to pay each month, especially when considering all the costs, including taxes, insurance and private mortgage insurance.
- If you’re putting enough money down. With minimum down payments commonly as low as 3%, 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 may be for you.
How lenders decide how much you can afford to borrow
Typical costs included in a mortgage payment
- Principal: This is the amount you borrow. Each mortgage payment reduces the principal you owe.
- Interest: What the lender charges you to lend 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. You pay about one-twelfth of your annual tax bill with each mortgage payment, and the servicer saves them in an escrow account. When the taxes are due, the loan servicer pays them.
- Homeowners insurance: Your policy covers damage and financial losses from fire, storms, theft, a tree falling on your house and other bad things. As with property taxes, you pay roughly one-twelfth of your annual premium each month, and the servicer pays the bill when it's due.
- 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 backed by the Federal Housing Administration.
Reducing monthly mortgage payments
- Extend the term (the number of years it will take to pay off the loan). With a longer term, your payment will be lower but you’ll pay more interest over the years. Review your amortization schedule to see the impact of extending your loan.
- Buy less house. Taking out a smaller loan means a smaller monthly mortgage payment.
- Avoid paying PMI. With a down payment of 20% or more, you won’t have to pay private mortgage insurance. Similarly, keeping at least 20% equity in the home lets you avoid PMI when you refinance.
- Get a lower interest rate. Making a larger down payment can not only let you avoid PMI, but reduce your interest rate, too. That means a lower monthly mortgage payment.
Monthly mortgage payments can go up
- Property taxes or homeowners insurance premiums rise. These costs are included in most mortgage payments.
- You incur a late payment fee from your mortgage loan servicer.
- You have an adjustable-rate mortgage and the rate rises at the adjustment period.
Mortgage calculator by state
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