Finance · Michigan

Michigan Mortgage Calculator (2026)

Calculate your monthly payment with Michigan-specific property tax (1.54%) and average insurance ($1,400/yr).

Michigan defaults: property tax ≈ 1.54% of home value · homeowners insurance ≈ $1,400/year · median home value ≈ $270,000. The calculator is preset with these — adjust for your situation.
Standard loan; PMI if DP < 20%, drops at 78% LTV.
Annual costs

Monthly payment

$2,181.10
PITI + PMI/MIP

Payment breakdown

Principal & interest
$1,616.69
Property tax
$346.50
Insurance
$116.67
PMI
Drops month 115
$101.25
Total monthly
$2,181.10

Loan summary

Loan amount
90.0% LTV
$243,000
Total interest paid
$339,007

Amortization schedule (first 12 + every 12 months)

MonthPrincipalInterestPMI/MIPBalance
1$199.19$1,417.50$101.25$242,801
2$200.35$1,416.34$101.25$242,600
3$201.52$1,415.17$101.25$242,399
4$202.69$1,413.99$101.25$242,196
5$203.87$1,412.81$101.25$241,992
6$205.06$1,411.62$101.25$241,787
7$206.26$1,410.43$101.25$241,581
8$207.46$1,409.22$101.25$241,374
9$208.67$1,408.01$101.25$241,165
10$209.89$1,406.80$101.25$240,955
11$211.11$1,405.57$101.25$240,744
12$212.35$1,404.34$101.25$240,532
24$227.70$1,388.99$101.25$237,885
36$244.16$1,372.53$101.25$235,047
48$261.81$1,354.88$101.25$232,003
60$280.73$1,335.95$101.25$228,740
72$301.03$1,315.66$101.25$225,240
84$322.79$1,293.90$101.25$221,488
96$346.12$1,270.56$101.25$217,465
108$371.14$1,245.54$101.25$213,150
120$397.97$1,218.71$208,524
132$426.74$1,189.94$203,563
144$457.59$1,159.09$198,244
156$490.67$1,126.01$192,540
168$526.14$1,090.54$186,424
180$564.18$1,052.51$179,866
192$604.96$1,011.72$172,833
204$648.69$967.99$165,293
216$695.59$921.10$157,207
228$745.87$870.81$148,536
240$799.79$816.89$139,239
252$857.61$759.08$129,270
264$919.60$697.08$118,580
276$986.08$630.60$107,117
288$1,057.37$559.32$94,826
300$1,133.80$482.88$81,646
312$1,215.77$400.92$67,513
324$1,303.65$313.03$52,359
336$1,397.90$218.79$36,109
348$1,498.95$117.74$18,684
360$1,607.31$9.38$0

What the payment actually costs

Michigan property tax averages 1.54% of value — 14th highest of 51 states, against a national average near 1.10%. On a $400,000 home that is about $6,160 a year, or $513 a month added to principal and interest.

Homeowners insurance runs about $1,400 a year in Michigan, 28th of 51 states and below the $1,552 national average. Together, tax and insurance add roughly $630 a month to the payment before you have paid a dollar of principal.

How this fits the rest of your tax bill

Michigan taxes both income and property, so neither side offsets the other. Property tax at 1.54% ranks 14th of 51, and state income tax applies on top. Model both together when comparing against a no-income-tax state, because the comparison flips depending on how much house you buy relative to what you earn.

Housing costs compound with the rate. Michigan runs about 7% below national-average costs, so the same 1.54% rate applies to a smaller assessed value than it would elsewhere. A percentage rate is only half the number that matters; the base it applies to is the other half.

Property tax rates are effective statewide averages; your county assessor sets the actual figure and it varies widely within a state. See our methodology.

Frequently Asked Questions

What's the average property tax rate in Michigan?
Michigan's effective property tax rate is approximately 1.54% of home value per year. On a $270,000 home, that's about $4,158 per year (or $347/month). The calculator above uses this as the default — adjust if your specific county is higher or lower.
What's a typical homeowners insurance cost in Michigan?
The average annual homeowners insurance premium in Michigan is around $1,400 for a typical home. High-risk states (Florida, Louisiana, Texas) tend to be higher due to hurricane/flood/wildfire exposure; low-cost states (Oregon, Hawaii, DC) sit at $1,000 or less.
How much do I need to put down on a Michigan mortgage?
Conventional loans typically require 5-20% down. FHA allows just 3.5% down with a 580+ credit score. VA loans (military) allow 0% down. Putting 20%+ avoids PMI entirely on conventional loans, saving you 0.5-1% of the loan amount per year.
What credit score do I need to buy a home in Michigan?
Conventional: 620 minimum (740+ for best rates). FHA: 580 with 3.5% down, or 500 with 10% down. VA: most lenders want 620 even though VA itself has no minimum. Higher credit = lower rate = thousands in savings over the life of the loan.
Should I rent or buy in this market?
Generally buying makes sense if you plan to stay 5+ years and your monthly payment (including taxes, insurance, maintenance) is within ~30% of your gross income. Use the calculator above to see your real monthly cost — many buyers underestimate the non-mortgage costs by 30-40%.

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