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Michigan Mortgage Rates

Michigan Mortgage Rates
Betsalel Cohen
By Betsalel Cohen
2017-07-23T06:40:15

Comparing Michigan Mortgage Rates with National Rates

In order to help you see how Michigan mortgage rates compare with National rates, check out the following rate table from the industry website mortgagenewsdaily.com. These rates represent national averages and are based on specific loan assumptions.

Shopping for Best Mortgage Rates in Michigan

It is important to shop around for the best terms. Make sure that you compare rates, lender fees and learn about third party fees. When comparing mortgage offers check out the term (length), interest rate (fixed vs. variable), and if applicable the cost of mortgage insurance. Get more information about mortgage rates and mortgage fees. Also, FHA loans, which always require mortgage insurance, differ from conventional loans, which require Private Mortgage Insurance (PMI) if your loan to value ratio (LTV) is over 80%. Make sure that you use all of your costs when comparing loans.

Qualifying for a Mortgage in Michigan

In order to qualify for the best mortgage rates in Michigan it is important to have an excellent credit score. Also, you want to make sure that your debt to income ratio (DTI) and your downpayment or equity position , your loan to value ratio (LTV) are sufficient to qualify. Read this Bills.com article about qualifying for a mortgage.

Mortgage Resources for Michigan

Michigan is the sixth most populous US state. According to the US census, as of 2017, there is an estimated population of over 12.8 million residents, which represents 4% of the US population. Based on FHFA’s All-Transaction Housing Price Index for Michigan, Housing prices in Michigan hit a low point in Q2 2011 after dropping by more than 28% from their Q1 2005 levels. Since 2011, by Q1 2017 prices have risen by more than 35%. This has created a great opportunity for many borrowers to refinance at low rates.

  1. FHA loan amounts in Michigan: (note:set the table to Michigan). There are 83 counties in the state of Michigan of which 100% of the single family units meet the Standard loan limit, currently at $275,665.
  2. FHFA Conventional Loan Amounts: Check the pdf from FHFA for all states and search for Michigan and your county or check out the FHFA conforming limit map. The FHFA has higher base limits than the FHA. All of the counties meet the base limit of $424,100.
  3. The Michigan housing market was hard hit during the 2008 Great Recession. However, many homeowners were able to take advantage of low interest rates and refinance into HARP loans. Based on the FHFA Refinance Report for May 2017, Michigan had the third most HARP loans of all the states with over 228 thousand HARP loans since inception of the program in 2009, which represented 6.6% of all HARP loans. In addition, more than 14% of the HARP loans had LTV over 125%.
  4. Michigan First Home Buyer Programs: The Michigan State Housing Development Authority (MSHDA) aims to create and maintain affordable and save housing . They have a number of programs to help homeowners including down payment assistance programs, home loan programs, mortgage tax credit programs, and homebuyer education courses. Borrowers must meet eligibility requirements including credit, income and purchase limits.
  5. Check out the Hud’s website for more information about homeowner programs and homeowner education programs.

Mortgage Trends and Statistics for Michigan

Mortgage rates, loan amounts, LTV, (etc) vary based on areas. The FHFA provides a useful insight into differences in conventional loans. based on Metropolitan Areas.

Source of Data: FHFA Historical Table - (TERMS ON CONVENTIONAL HOME MORTGAGES) Table V - Averages for Major Metropolitan Areas: Loans Closed

Check out some differences in One MSA area in Michigan:

  • Mortgage Rates for Conventional Loans in One MSA in Michigan
  • Mortgage Fees in One MSA in Michigan
  • Loan Amount in Michigan for One MSA
  • LTV over 90% in One MSA in Michigan

Mortgage Rates for Conventional Loans in One MSA in Michigan

Mortgage Fees in One MSA in Michigan

Loan Amount in Michigan for One MSA

LTV over 90% in One MSA in Michigan for One MSA