Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Michigan
Michigan offers a diverse housing landscape at a very accessible average price of $235,000. The state has undergone significant economic recovery since the auto industry restructuring, with the Detroit metro now featuring a mix of revitalized urban neighborhoods and affluent Oakland County suburbs. Ann Arbor, home to the University of Michigan, is one of the most educated and economically dynamic small cities in the Midwest — and its housing market reflects that, with median prices considerably above the state average.
Grand Rapids has emerged as Michigan's most dynamic growth market, benefiting from a diversified economy anchored by healthcare (Spectrum Health, Mercy Health), manufacturing, and a growing tech sector. West Michigan communities like Grandville, Kentwood, and Wyoming offer affordable suburban alternatives to the city. On the lakefront, communities along Lake Michigan — South Haven, Holland, St. Joseph — attract buyers seeking resort-adjacent living with more reasonable prices than traditional beach markets.
Michigan's Principal Residence Exemption (PRE) provides important property tax savings for owner-occupants by exempting the primary residence from the 18-mill school operating levy. Buyers must file the exemption affidavit with their local assessor promptly after closing. The Michigan State Housing Development Authority's MI 10K DPA Loan provides $10,000 in statewide down payment assistance for qualifying buyers.
Key Housing Facts for Michigan
Average home price: $235,000
Average effective property tax rate: 1.38%
Average homeowners insurance: $1,300/year
Principal Residence Exemption: significant property tax reduction for owner-occupants
Most dynamic markets: Grand Rapids, Ann Arbor, Royal Oak/Birmingham
Most affordable markets: Flint, Saginaw, Bay City, Lansing
Frequently Asked Questions
Michigan's average effective property tax rate is approximately 1.38%, above the national average. On a $235,000 home, you'd pay roughly $3,243 per year in property taxes. Michigan's Proposal A (1994) limits annual assessed value increases to 5% or the rate of inflation (whichever is lower) for existing homeowners, providing protection against rapid tax increases.
Michigan State Housing Development Authority (MSHDA) offers the MI Home Loan with competitive interest rates plus the MI 10K DPA Loan providing $10,000 in down payment assistance available statewide. The MI Home Loan Flex expands eligibility to non-first-time buyers in targeted zip codes. Income and purchase price limits apply.
Michigan's Principal Residence Exemption (PRE) exempts a primary residence from the 18-mill school operating tax, effectively reducing property taxes by about 18 mills on the taxable value. Buyers must file a Principal Residence Exemption affidavit with the local assessor by June 1 or November 1 to receive the exemption. This can save several hundred to over a thousand dollars per year depending on the property's taxable value.
The Grand Rapids metro has emerged as one of Michigan's strongest markets, with consistent job growth in healthcare, manufacturing, and technology. Ann Arbor commands premium prices due to the University of Michigan and its biotech ecosystem. The Detroit metro — particularly Oakland County suburbs like Royal Oak, Birmingham, and Bloomfield Hills — offers a wide range of prices. Northern Michigan resort communities like Traverse City and Petoskey have also seen strong appreciation.