Current Michigan Mortgage and Refinance Rates

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Current 30-year fixed mortgage rates are averaging: 7.28%

Current 15-year fixed mortgage rates are averaging: 6.77%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

Compare MI mortgage rates today

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Refinance rates in Michigan

  • Rate-and-term refinances change either your interest rate or loan term, or both. Lengthening your loan term or lowering your interest rate will reduce your monthly mortgage payment.
    Refinance rates may be slightly lower than purchase mortgage rates.
  • Cash-out refinances replace your current home loan with a brand new loan while, at the same time, giving you a chance to convert some of your home equity to cash.
    Cash-out refinances usually come with higher rates than regular refinances. That’s because you’re taking out additional cash on top of your new mortgage amount.
  • Conventional refinances aren’t a part of a government loan program.
    You can expect conventional refinances to have higher rates than government-backed refinances.
  • FHA refinances are insured by the Federal Housing Administration (FHA). These loans can make homeownership a little more accessible, because they come with less stringent requirements.
    FHA refinance rates are usually lower than conventional refinance rates. Judging by mortgage rates in Michigan today, you shouldn’t be surprised if an FHA loan offers you a rate about 0.84 percentage points lower.
  • VA refinances which are part of the benefits offered to military service members, are backed by the U.S. Department of Veterans Affairs (VA). As long as you’re a qualified military borrower, you can enjoy low interest rates and flexible requirements. Most VA loan borrowers can put zero money down, and there’s no minimum credit score requirement.
    VA loan rates are usually lower than conventional, FHA and other common loan types. Right now in Michigan you might see VA rates outcompete conventional loans by more than a full percentage point.

Current 30-year fixed mortgage refinance rates are averaging: 7.45%

The current average rate for a 15-year fixed mortgage refinance is: 6.87%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
See whether refinancing makes sense for you using our mortgage refinance calculator.

 What is the current mortgage rates forecast for 2024?

The current mortgage rates forecast isn’t all sunshine and rainbows, but it does call for cautious optimism. That’s because rates aren’t expected to rise significantly in the near future, and our market expert thinks that 30-year rates could end the year closer to 6% — and perhaps even lower.

Although home affordability is still an ongoing problem across the country, if inflation continues to ease and interest rates remain where they are (or go even lower), the housing market may have a chance to pick up steam.

How do I get the best mortgage rate for my Michigan home loan?

There are many factors determining mortgage rates that are out of your control, but don’t worry — there are a few steps you can take today to get the best mortgage rate:

  1. Boost your credit. Your credit score is an extremely important factor when lenders calculate what sort of interest rates to offer you. The higher your score, the less risky a lender is likely to perceive you are. In return, they’ll usually give you a better rate.
  2. Lower your debt-to-income (DTI) ratio. Your DTI ratio is a metric that compares your gross monthly income to your monthly debt load. The higher your DTI, the more of a risk your lender is taking when they lend you money. That’s why increasing your income, paying off some debts or getting a cosigner can help you get a better mortgage rate.
  3. Buy a single-family, site-built home. Lenders view certain types of homes as more risky to lend money for than others. If you’re buying a manufactured home, a multifamily property, a vacation home or an investment property, you’ll likely pay more in interest to offset that risk.
  4. Pay mortgage points. Mortgage points are essentially upfront interest payments that you can choose to pay if you want a lower interest rate. One point is equal to 1% of your loan amount and typically allows you to lower your interest rate by 0.25 percentage points.
  5. Compare offers from multiple lenders. If you want to save thousands of dollars over the life of your loan, there’s a simple way to do it: comparison shop. Getting several loan offers and choosing the best among them is a simple process that can save you a ton of money.

Read more about our picks for the best mortgage lenders.

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When should I lock in my mortgage rate?

Once you’ve applied for a mortgage and received a loan estimate with an offer you want to take advantage of, you should request that the lender give you a mortgage rate lock. This ensures that your interest rate won’t increase before you make it to the closing table.

2024 Michigan home loan programs

If you want to own a home in Michigan and need some assistance, your first stop should be the Michigan State Housing Development Authority (MSHDA). They offer a variety of programs that help first-time homebuyers cover closing costs and down payments. However, MSHDA also allows repeat buyers to participate as long as they live in certain neighborhoods known as “targeted areas.”

Who qualifies as a first-time homebuyer?

People who have never owned a home
People who haven’t owned real estate in the last three years

  What qualifies as a targeted area?

Qualifying counties, cities and townships are compiled in this list of Michigan targeted areas.

MI Home Loan Program

This MSHDA program offers 30-year conventional, FHA, VA and USDA mortgages that come with discounted interest rates. These loans can also be paired with MSHDA’s down payment assistance program, which we’ll cover below.

Who qualifies?

All adult household members must:

Be a first-time homebuyer or purchasing in a targeted area
Have at least a 640 credit score (minimum may be higher depending on housing type)
Purchase a house worth no more than $224,500
Earn within the program’s income limits

  Worried about meeting the credit requirement?
If you can’t meet that 640 credit requirement as a household, don’t despair. As long as one person in the household has at least a 640, that person can apply for the loan alone using MSHDA’s “flex” option. The only drawback is that a “flex” loan can’t be used with MSHDA’s down payment assistance program.

Michigan Down Payment Program

This is a generous down payment assistance program, which offers Michiganders up to $10,000 in the form of a second mortgage. The funds can also be used to pay for closing costs, escrow deposits or prepaids (like taxes, insurance or special assessments). The money does have to be repaid, but only when you sell or refinance the home — there are no interest charges or monthly payments along the way.

Who qualifies?

Borrowers must:

Use the program in conjunction with a MI Home Loan program (described above)
Complete a homebuyer education course
Be prepared to contribute at least 1% of the home’s price

Detroit Down Payment Assistance Program

Funded by the American Rescue Plan Act (ARPA), this program offers up to $25,000 to low- and middle-income Detroiters who need help coming up with a down payment. The funds can also be used to cover closing costs, prepaids, mortgage points and to pay down the first mortgage’s principal balance. As long as you stay in the home for three years, this money — which comes in the form of a grant — doesn’t have to be repaid. If you leave before three years, you’ll have to repay some or all of the funds.

Who qualifies?

Borrowers must:

Meet the program’s income limits, which range from $43,740 per year for a one-person household to $151,680 for an eight-person household.
Be a Detroit resident who has lived in the state for at least 12 months or a former Detroit homeowner who lost a home to property tax foreclosure between 2010 and 2016

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Learn about different types of MI mortgage loans

Michigan conventional loans. Conventional loans offer good options for borrowers who may not want to make a huge down payment but can meet fairly stringent credit score and other minimum requirements.

Michigan FHA loans. For those struggling to meet the 620 credit score requirement that typically come with conventional loans, FHA loan requirements offer an alternative. You can qualify with a score as low as 500 if you make a 10% down payment. And if you can only afford to put down between 3.5% and 10% of the home’s purchase price, you can still qualify for an FHA loan, as long as you have at least a 580 credit score.

Michigan VA loans. VA loan requirements are even more forgiving, and there’s no minimum credit score or down payment requirement set by the VA (as long as you have full VA entitlement).

Michigan streamline refinances are FHA streamline refinance loans or VA interest rate reduction refinance loans(IRRRLs). They’re called “streamline” because you can move through the refinance process quicker and with less paperwork than other refinance programs allow. The only big drawback is that you have to refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan. If you want to switch programs, or refinance into a conventional loan, you won’t be able to use a streamline refinance.

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