Today's Mortgage Rates in Michigan

You have access to a broad range of home  loans to meet your needs in Michigan. Here are a few common mortgage options for Michiganders:

• Conventional Fixed-Rate Mortgages: Fixed-rate mortgages feature predictable principle and interest payments throughout the life of the loan, which typically ranges between 15 and 30 years. Conventional loans conform to Fannie Mae and Freddie Mac guidelines for underwriting and loan amounts, and typically require a credit score of at least 620. Convention loans also generally require a debt-to-income (DTI) ratio beneath 43-45%. The minimum down payment is generally 5%, but can be as low as 3% for qualifying first-time homebuyers. Private mortgage insurance (PMI) is usually unless your down payment is 20% or higher, but it can usually be canceled once you gain enough equity in your home.

• Adjustable-Rate Mortgages (ARMs): ARMs usually have an initial fixed-rate period followed by regular rate adjustments. After that, the rate adjusts based on both a lender-set margin and a benchmark index. A 5/1 ARM, for instance, means five years with a fixed interest rate followed by adjustments every year after that. Rate changes are usually subject to caps in an ARM. Like other conventional loans, PMI may be required if your down payment is less than 20%.

• FHA Loans: FHA loans have flexible credit score and down payment requirements. If your credit score is 580 or higher, you may qualify with a down payment as low as 3.5%. FHA loans require mortgage insurance premiums (MIP) regardless of down payment size. MIP includes an upfront premium and ongoing monthly payments. If you have a down payment of less than 10%, MIP typically lasts for the life of the loan unless you refinance into a conventional mortgage. If your down payment is 10% or higher, you can request to cancel your MIP after 11 years. 

• VA Loans:  VA loans are only available to eligible veterans, active-duty service members, and surviving spouses. They feature competitive rates and don't require private mortgage insurance or down payments. VA loans require a one-time VA funding fee, but that can be financed. Some veterans, like those with disabilities related to their service, aren't required to pay the funding fee. 

• Jumbo Loans: These are mortgages that are higher than conforming loan limits. Most Michigan counties use a baseline conforming loan limit set by the FHFA. Jumbo loans typically require stricter underwriting, and rates may be higher or lower than conforming loans depending on market conditions and borrower qualifications.