Michigan mortgage calculator
Estimate your monthly payment for a home in Michigan, with property tax at the state average of 1.25% and home insurance included. Rates use the 7.4% national 30-year average from Freddie Mac (week of October 8, 2026).
Estimated monthly payment
- Loan amount
- $185,280
- Down payment
- $46,320
- Interest over 30 years
- $276,543
- Income needed (28% guideline)
- $68,625 a year
Estimate only. Mortgage insurance (PMI) is added when the down payment is under 20%. Real taxes, insurance and lender fees vary by property.
How this is calculated. Principal and interest use the standard fixed-rate loan formula. Property tax uses the Michigan average effective rate: the median real estate tax paid divided by the median home value. Home insurance is a general estimate that you can change.
Sources: Freddie Mac mortgage rate survey, week of October 8, 2026; U.S. Census Bureau American Community Survey, 2020–2024. Updated October 2026. Full methodology.
What a typical home costs per month in Michigan
A home valued at the Michigan median of $231,600 (the Census Bureau's figure for owner-occupied homes), bought with 20% down at 7.4% over 30 years, comes to about $1,601 a month. That is $1,283 in principal and interest, $241 in property tax and $77 in insurance.
Over a year that is 26.4% of the state's median household income of $72,875. Keeping housing costs near 28% of gross income would take a household income of about $68,625.
Property tax in Michigan
Michigan has the 14th highest effective property tax rate of the 50 states at 1.25%, above the typical state rate of 0.80%. The median Michigan homeowner pays $2,904 a year.
| Home price | Tax per year | Tax per month |
|---|---|---|
| $200,000 | $2,508 | $209 |
| $300,000 | $3,762 | $313 |
| $400,000 | $5,016 | $418 |
| $500,000 | $6,269 | $522 |
| $750,000 | $9,404 | $784 |
These figures apply the statewide average rate. Rates differ between counties and taxing districts, and some homes qualify for exemptions.
States with similar property tax rates
- Ohio1.31% (11th highest)
- Pennsylvania1.30% (12th highest)
- Kansas1.29% (13th highest)
- Rhode Island1.21% (15th highest)
- Alaska1.11% (16th highest)
- Massachusetts1.07% (17th highest)
Questions about Michigan mortgage payments
What is the property tax rate in Michigan?
The average effective property tax rate in Michigan is 1.25%. Census Bureau data shows homeowners paid a median of $2,904 a year on homes with a median value of $231,600. Your own rate depends on your county, city and school district.
How much is the monthly mortgage payment on a median-value home in Michigan?
About $1,601 a month including property tax and insurance, assuming 20% down at 7.4% on a 30-year loan. Principal and interest alone come to $1,283.
How much income do I need to buy a home in Michigan?
A common guideline keeps housing costs under 28% of gross income. For the median-value home above, that works out to about $68,625 a year. Lenders also look at debts, credit score and savings, so your own number may differ.
Does this calculator include property tax and insurance?
Yes. It adds property tax at 1.25% of the home price and home insurance at 0.4% of the home price as a starting estimate. Change either number to match a real quote. Mortgage insurance is added automatically when the down payment is under 20%.
Last updated October 2026. See the methodology for sources and limits.