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.

Your monthly payment
$1,599
30 year fixed loan term
Monthly payment
Principal & interest

$1,163

Property taxes

Homeowners insurance

Homeowners association (HOA) fees

Compare common loan types

Total principal: $240,000

Loan Term
30 year fixedYour input
15 year fixed30 year fixed
Monthly Payment$1,599$2,033$1,431
Mortgage Rate4.125%2.47%*2.87%*
Total interest paid
$178,737
$47,443
$118,236
Loan Term
30 year fixedYour input
15 year fixed30 year fixed
Monthly Payment$1,599$2,033$1,431
Mortgage Rate4.125%2.47%*2.87%*
Total interest paid
$178,737
$47,443
$118,236
Amortization

See how your payments change over time for your 30 year fixed loan term

At year 0

30 year fixed loan term

Remaining
$240,000
Principal Paid
$0
Interest Paid
$0
Year 0
drag me
1
30
Years

Insights

We’ll share an interesting insight here for key milestones in your payoff schedule.

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Principal & interest

$1,163

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Michigan mortgage and refinance rates today (APR)

Loan typeAverage
rate
Change
1 day
Change
1 year
30-year fixed2.893%
0.015%
1.097%
15-year fixed2.653%
0.0%
0.907%
5/1 ARM3.188%
0.199%
1.042%

Today’s rate

2.893%
30-year fixed

Current rates in Michigan are 2.893% for a 30-year fixed, 2.653% for a 15-year fixed, and 3.188% 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 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

State program

Best for

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...

See full article

Michigan's best mortgage lenders

NerdWallet has done the work for you to pick the best financing partner for you in Michigan.

See full article

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.

CountyAvg. property tax rateAvg. home value
Alcona County0.99%$96,000
Alger County1.03%$119,000
Allegan County1.21%$160,000
Alpena County1.24%$94,000
Antrim County1.04%$151,500
Arenac County1.33%$88,900
Baraga County0.98%$93,100
Barry County1.19%$146,300
Bay County1.56%$102,800
Benzie County0.9%$162,200
Berrien County1.12%$150,400
Branch County1.21%$97,700
Calhoun County1.69%$116,200
Cass County1.03%$127,600
Charlevoix County1.03%$158,800
Cheboygan County0.94%$116,900
Chippewa County1.21%$111,100
Clare County1.08%$85,000
Clinton County1.47%$177,100
Crawford County1.24%$91,900
Delta County1.3%$105,900
Dickinson County1.43%$92,100
Eaton County1.56%$156,000
Emmet County1.01%$171,100
Genesee County1.62%$110,000
Gladwin County1.25%$100,500
Gogebic County1.35%$70,100
Grand Traverse County1.09%$198,000
Gratiot County1.36%$92,100
Hillsdale County1.15%$105,600
Houghton County1.34%$102,400
Huron County1.22%$96,200
Ingham County2.07%$134,400
Ionia County1.32%$117,000
Iosco County1.09%$89,000
Iron County1.22%$76,700
Isabella County1.38%$136,100
Jackson County1.35%$131,300
Kalamazoo County1.56%$158,500
Kalkaska County1.03%$105,300
Kent County1.42%$173,900
Keweenaw County0.96%$95,800
Lake County1.28%$80,800
Lapeer County1.07%$164,300
Leelanau County0.83%$248,900
Lenawee County1.43%$141,800
Livingston County1.16%$251,700
Luce County1.07%$83,200
Mackinac County0.96%$125,100
Macomb County1.57%$166,500
Manistee County1.21%$116,200
Marquette County1.11%$154,900
Mason County1.25%$126,600
Mecosta County1.11%$114,700
Menominee County1.11%$95,900
Midland County1.6%$140,200
Missaukee County1.09%$107,100
Monroe County1.25%$165,600
Montcalm County1.27%$101,000
Montmorency County1.04%$93,800
Muskegon County1.43%$119,900
Newaygo County1.28%$104,500
Oakland County1.5%$243,800
Oceana County1.14%$106,300
Ogemaw County1.08%$89,600
Ontonagon County1.28%$69,500
Osceola County1.19%$91,400
Oscoda County0.83%$83,400
Otsego County1.09%$124,100
Ottawa County1.22%$190,500
Presque Isle County1.04%$97,800
Roscommon County1.01%$94,000
Saginaw County1.5%$104,300
Sanilac County1.06%$101,300
Schoolcraft County1.05%$105,000
Shiawassee County1.31%$133,200
St. Clair County1.25%$154,900
St. Joseph County1.19%$111,200
Tuscola County1.3%$98,800
Van Buren County1.36%$136,200
Washtenaw County1.63%$258,700
Wayne County1.96%$114,400
Wexford County1.28%$96,500

Source: American Communities Survey 2016, U.S. Census

How to calculate a mortgage payment

Under "Home price," enter the price (if you're buying) or the current value (if you're refinancing). NerdWallet also has a refinancing calculator.

Under "Down payment," enter the amount of your down payment (if you’re buying) or the amount of equity you have (if refinancing). A down payment is the cash you pay upfront for a home, and home equity is the value of the home, minus what you owe.

On desktop, under "Interest rate" (to the right), enter the rate. Under "Loan term," click the plus and minus signs to adjust the length of the mortgage in years.

On mobile devices, tap "Refine Results" to find the field to enter the rate and use the plus and minus signs to select the "Loan term."

You may enter your own figures for property taxes, homeowners insurance and homeowners association fees, if you don’t wish to use NerdWallet’s estimates. Edit these figures by clicking on the amount currently displayed.

The mortgage calculator lets you click "Compare common loan types" to view a comparison of different loan terms. Click "Amortization" to see how the principal balance, principal paid (equity) and total interest paid change year by year. On mobile devices, scroll down to see "Amortization."

» MORE: What is mortgage amortization?

Formula for calculating a mortgage payment

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 a mortgage calculator helps you

Determining what your monthly house payment will be is an important part of figuring out how much house you can afford. That monthly payment is likely to be the biggest part of your cost of living.

Using NerdWallet’s mortgage calculator lets you estimate your mortgage payment when you buy a home or refinance. You can change loan details in the calculator to run scenarios. The calculator can help you decide:

  • 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

Mortgage lenders are required to assess your ability to repay the amount you want to borrow. A lot of factors go into that assessment, and the main one is debt-to-income ratio.

Your debt-to-income ratio is the percentage of pretax income that goes toward monthly debt payments, including the mortgage, car payments, student loans, minimum credit card payments and child support. Lenders look most favorably on debt-to-income ratios of 36% or less — or a maximum of $1,800 a month on an income of $5,000 a month before taxes.

» MORE: Calculate your debt-to-income ratio

Typical costs included in a mortgage payment

If your mortgage payment included just principal and interest, you could use a bare-bones mortgage calculator. But most mortgage payments include other charges as well. Here are the key components of the monthly 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.

Typically, when you belong to a homeowners association, the dues are billed directly, and it's not added to the monthly mortgage payment. Because HOA dues can be easy to forget, they're included in NerdWallet's mortgage calculator.

Reducing monthly mortgage payments

The mortgage calculator lets you test scenarios to see how you can reduce the monthly 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

Your monthly payment can go up over time if:

  • 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.