Michigan Mortgage Rates
Compare Michigan mortgage rates and choose the best option for your needs.
Purchase
Purchase
Purchase
- Fed finally cuts rates!
- Down payments as low as 1%
- Explore Your Options
- Calculate a Payment for $0
- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
- Rates have fallen, the time is now to move on your home purchase.
- Complete our Digital Mortgage experience for painless pre-approvals.
- Understand your home affordability options today with our mortgage experts.
- See personalized rates and loan options for your next home purchase.
- Attention Wells Fargo customers: Special benefits and discounts available
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- As low as 3% down on a fixed-rate mortgage
- 0% Down VA Loans for Veterans & Military
- Secure preapproval quickly with 24/7 access
- Competitively low VA rates, no PMI required
- Over 300,000 verified 5-star reviews
Mortgage in Michigan: Top Lenders in 2024
Willing to buy a home in Michigan State? Utilizing a mortgage loan is typically the most effective approach, regardless of whether you're searching for a residential estate or an apartment. However, it's crucial to acknowledge that the terms offered by various mortgage lenders can vary greatly (use our mortgage calculator to estimate your future expenses). In this guide, we'll review some of the top-rated lenders and determine which ones are worth considering.
MI Mortgage Lenders Comparison
All the lenders we've examined are reputable companies with competitive rates and established track records. To provide you with the most comprehensive information, we'll compare them based on several key criteria, including APR, minimum down payment, eligibility requirements, and more.
Northpointe Bank Mortgage
Northpointe Bank , headquartered in Grand Rapids, Michigan, was established in 1999. While its roots are in Michigan, it provides mortgage services nationwide through online platforms and loan offices spanning 25 states. Its offerings include fixed- and variable-rate loans, both privately funded and government-insured, covering FHA, VA, and USDA options. These loans are available for various purposes, including purchase, refinancing, and construction.
Under optimal conditions - such as a credit score of 740 or higher and a 25% down payment—the APR for a 30-year loan is 6.607%, and for a 15-year loan, it stands at 6.464%. The minimum credit score required is 620.
| Pros: | Cons: |
|---|---|
| Full spectrum of loan offerings, including unique offers with $0 down payment. | The official website lacks transparency on any lender fees. |
| Extensive physical network. | The average rates are not as low. |
Change Home Mortgage
Change Home Mortgage was established in 1994. The company's commitment to serving underserved communities is evidenced by its certification as a Community Development Financial Institution (CDFI). In addition to offering conventional mortgage options, Change Home Mortgage provides access to all major types of government-backed loans, including FHA, VA, and USDA programs.
One notable feature is its alternative to the FHA plan: a conventional loan requiring only a 3% down payment, which may appeal to those seeking more flexible financing options. Change Home Mortgage also offers jumbo loans, reverse mortgages, and remortgaging options to meet diverse borrowing needs.
However, specific details regarding interest rates, fee schedules, and borrower eligibility criteria are not publicly disclosed. Prospective borrowers are encouraged to inquire directly with Change Home Mortgage for more information.
| Pros: | Cons: |
|---|---|
| Perfect for low- to moderate-income borrowers. | Not licensed in Massachusetts, Missouri and New York. |
| A good choice of government-backed plans available. | Doesn't disclose the exact terms and requirements. |
| A close-to-nationwide coverage. |
AmeriSave
AmeriSave has established itself as a nationwide lender since its foundation in 2002. Consequently, residents of this state often receive some of the most enticing offers from the company. AmeriSave's credibility is further underscored by its excellent ratings from BBB (A+) and Trustpilot (4.3/5).
While the advertised rate of 4.899% may seem appealing, it typically requires a FICO score as high as 740 and a 20% down payment. It's important to note that your actual rate is likely to differ from the advertised rate. For conventional loans, a credit score of 620 is needed, while government-insured plans are available starting from 600.
| Pros: | Cons: |
|---|---|
| Highly lucrative mortgage rates. | Not all of the lender fees included in the closing costs are transparently disclosed at the lender’s website. |
| Diversity of loan types offered. This includes purchase and refinancing with fixed and adjustable rates, as well as the three main kinds of government-backed loans (FHA, VA and USDA). | |
| Easy and convenient, mobile-friendly application process. |
Average Mortgage Rate in Michigan from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Michigan.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Michigan
| Criteria | Amount, $ |
|---|---|
| The median home value in Michigan | $213,577 |
| The income required to buy the median priced home in Michigan | $34,994 |
| The monthly mortgage payment required to buy the median priced home in Michigan | $810 |
| The median household income for Michigan | $65,355 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan entails a significant commitment spanning 15 to 30 years, so it's crucial to carefully weigh your options before finalizing any agreements with a lender. Several key aspects should be considered when selecting a lending entity.
- Type of Lender. Primarily, there are two popular options: banks and online mortgage lenders. Banks typically offer attractive rates but often conduct stringent credit checks, resulting in longer approval times and rigorous eligibility criteria. Conversely, online lenders operate with greater speed and may have less stringent requirements for homebuyers.
- APR and Fees. Each loan carries its own costs, and mortgages are no exception. Beyond the interest rate, these costs encompass additional fees such as origination fees, mortgage insurance fees, closing costs, and more. As of the latest data, the average mortgage rate for a fixed-rate 30-year loan in Michigan stands at 6.58%.
- Terms and Conditions. Considerations here include the minimum down payment required, which can range from 0% to 20% depending on the loan type and your current status (e.g., military, employed, self-employed, etc.). Another crucial parameter is the loan term, representing its total duration, with common options being 15 and 30 years.
What Mortgage Lender is the Number One in Michigan?
The array of reputable mortgage lenders in MI is extensive, making it challenging to provide a definitive answer to this question. Ultimately, it depends on various factors. For instance, Rocket Mortgage stands out as an industry leader, boasting a loan volume of $11.5 billion in 2021. To make an informed choice, consult our list of recommended lenders.
First-Time Homebuyer Programs in Michigan
Buying a home for the first time is quite challenging. Happily, residents of Michigan can take advantage of some governmental programs aimed at raising mortgage affordability.
- Federal Housing Administration loan program. In its framework, a buyer gets insurance from the federal government. The fee for this insurance is included in the total cost of the future loan. In return for this, the homebuyer gets some serious benefits: a low interest rate and minimal credit requirements. Thus, his FICO score can be as low as 500, and the debt to income ratio – just 50%.
- USDA loan program. It is oriented toward those living in rural areas. The participants of this program can get a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in this region.
- VA loan programs. They are insured by the Veteran Affairs Department. This mortgage option is available to former militaries or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer’s credibility, signaling to home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals must provide documentary evidence of their financial capacity. A typical document set includes earning statements, account statements, a W2 form, or alternative proof of income spanning at least 2 years. Additionally, filling out the Uniform Residential Loan Application form is necessary.