Michigan Mortgage Calculator

Calculate your monthly mortgage payment in Michigan. Pre-filled with Michigan's average property tax rate of 1.54%. See principal, interest, PMI, property taxes, and insurance.

$70,000

Monthly Payment Breakdown

Principal & Interest
$1,770
Property Tax
$449
Homeowner's Insurance
$100
Total Monthly Payment
$2,319

Loan Summary

Home Price
$350,000
Down Payment
$70,000
Loan Amount
$280,000
Total Interest
$357,125
Total Cost(P&I + down payment)
$707,124

See how this mortgage fits your financial plan

Your estimated payment is $2,319/month. See how it fits alongside your income, savings, investments, and other expenses over time.

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Michigan Housing Overview

Michigan has an average property tax rate of 1.54%. Michigan's cost of living is about 5% below the national average, with very affordable housing outside of Ann Arbor.

Property Tax: 1.54%Flat 4.25% rateCity-level income taxes in some citiesGrowing tech sector

Buying a Home in Michigan

If you're considering buying a home in Michigan, understanding the local housing market and costs is essential. Property taxes, insurance rates, and home prices vary significantly by area within the state. This calculator pre-fills Michigan's average property tax rate of 1.54% to give you a more accurate estimate.

Michigan Property Taxes

Michigan has an average effective property tax rate of 1.54%. Property taxes are a significant component of your monthly housing cost — on a $350,000 home, a 1.54% rate means approximately $5390 per year, or $449 per month in property taxes alone.

Cost of Living in Michigan

Michigan's cost of living is about 5% below the national average, with very affordable housing outside of Ann Arbor. When evaluating whether to buy a home in Michigan, consider how your mortgage payment plus other housing costs fit within the recommended 28% of gross income guideline.

Financial Tips for Michigan Homebuyers

  • Michigan's 4.25% flat rate is competitive, but check for city-level taxes in Detroit, Grand Rapids, and others
  • Michigan has a moderate cost of living with affordable housing
  • Michigan's auto industry and growing tech sector in Ann Arbor/Detroit offer career opportunities
  • Michigan does not tax Social Security benefits for most taxpayers

Key Michigan Features

  • Flat 4.25% rate
  • City-level income taxes in some cities
  • Growing tech sector
  • No tax on Social Security for most

See How Your Michigan Mortgage Fits Your Financial Plan

This calculator shows your Michigan mortgage payment. Trajectoryy's full simulator shows how that payment fits alongside your income, taxes, savings, investments, and more.

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Compare Michigan Mortgage Costs with Other States

Indiana0.85% property taxOhio1.36% property taxWisconsin1.61% property taxCalifornia0.71% property taxNew York1.46% property taxTexas1.80% property tax

Frequently Asked Questions

What is the average property tax rate in Michigan?
The average effective property tax rate in Michigan is approximately 1.54%. This rate is applied to the assessed value of your property, which may differ from the market value depending on Michigan's assessment practices. Property tax rates can also vary significantly by county and municipality within the state.
How much does a typical mortgage payment cost in Michigan?
Your mortgage payment in Michigan depends on the home price, your down payment, interest rate, and loan term. With Michigan's average property tax rate of 1.54%, property taxes add a meaningful amount to your monthly payment. Use the calculator above with your specific numbers to get an accurate estimate.
Is Michigan an affordable state to buy a home?
Michigan's cost of living is about 5% below the national average, with very affordable housing outside of Ann Arbor. When evaluating affordability in Michigan, consider not just the home price but also property taxes (1.54% average), homeowner's insurance costs, and any HOA fees common in your area.
How do Michigan property taxes compare to other states?
Michigan's average property tax rate of 1.54% can be compared against the national average of roughly 1.1%. States like New Jersey (2.23%) and Illinois (1.97%) have among the highest rates, while Hawaii (0.28%) and Alabama (0.40%) have among the lowest.
What first-time homebuyer programs are available in Michigan?
Most states, including Michigan, offer first-time homebuyer programs through their state housing finance agency. These typically include down payment assistance, below-market interest rates, and closing cost grants. Check with Michigan's housing authority and the FHA, VA, and USDA loan programs for additional options.

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