Typical Michigan mortgage payment
The median home price in Michigan is roughly $240,000. Here's the estimated monthly principal & interest payment on that amount, by rate and term:
| Rate | 15-year | 30-year |
|---|---|---|
| 5.00% | $1,898 | $1,288 |
| 5.50% | $1,961 | $1,363 |
| 6.00% | $2,025 | $1,439 |
| 6.50% | $2,091 | $1,517 |
| 7.00% | $2,157 | $1,597 |
| 7.50% | $2,225 | $1,678 |
| 8.00% | $2,294 | $1,761 |
| 8.50% | $2,363 | $1,845 |
| 9.00% | $2,434 | $1,931 |
| 9.50% | $2,506 | $2,018 |
| 10.00% | $2,579 | $2,106 |
What a Michigan mortgage really costs (PITI)
Principal & interest alone would run about $1,517/month at 6.50% over 30 years. But Michigan's property tax - roughly 1.44% of home value per year here - adds about $288/month, and estimated homeowners insurance adds around $70/month. Your real total monthly payment (PITI) on a $240,000 Michigan home is closer to $1,875/month.
Using the standard 28%-of-income guideline, comfortably affording this home takes a household income around $80,356/year. A 20% down payment here is $48,000.
Michigan vs. its neighbors
Of Michigan and its neighbors, Indiana has the lowest estimated total monthly payment - about $118 less per month than Michigan.
| State | Median price | Property tax rate | Est. total monthly (PITI) |
|---|---|---|---|
| Ohio | $230,000 | 1.59% | $1,826/mo |
| Indiana | $240,000 | 0.85% | $1,757/mo |
| Michigan (this page) | $240,000 | 1.44% | $1,875/mo |
| Wisconsin | $290,000 | 1.85% | $2,365/mo |
What affects your Michigan payment?
- Property tax above is a statewide estimate - your county's actual rate may differ.
- Down payment: 20% down avoids private mortgage insurance (PMI).
- Loan term: a 15-year loan saves enormous interest vs. 30 years.
Median price, property tax rate and insurance are approximate estimates, not county-specific figures. Not financial advice.