Estimate your monthly mortgage payment in Michigan — principal & interest plus Michigan property tax and homeowner’s insurance.
Buying a home in Michigan: what to know
A balanced statewide market in Sep 2026 (~4.5 months of supply, ~48 days on market, ~98.25% sale-to-list, Houzeo), still appreciating modestly (~+2.5% YoY); southeast Michigan is in its mildest seller’s market in three years as inventory climbs toward balance (Realcomp data). With a median home price of $266,292 (Zillow ZHVI (statewide benchmark, cited in county reporting), Aug 2026 (+2.5% YoY)), 20% down means borrowing about $213,034 — within the 2026 conforming limit of $832,750 for most Michigan counties. Property taxes run about 1.19% of assessed value (effective rate), and insurance averages $1,056 a year statewide — both baked into the calculator above. First-time buyers should check out MSHDA MI Home Loan and MI 10K Down Payment Assistance Loan before shopping lenders.
Michigan mortgage facts
| Fact | Figure |
|---|---|
| 2026 conforming loan limit (1-unit) | $832,750 |
| Median home price | $266,292 |
| Median effective property tax rate | 1.19% |
| Average homeowner’s insurance | $1,056/year |
Data as of October 2026. Sources: FHFA (2026 conforming limits), Zillow ZHVI (statewide benchmark, cited in county reporting) (Aug 2026 (+2.5% YoY)), Tax Foundation (Facts & Figures 2026, 2024 ACS data, effective rate on owner-occupied housing) (2024), NAIC (via Insurance Information Institute, HO-3 owner-occupied average premium) (2022 (data year; latest published by III/NAIC)); rate: 7.40% (Freddie Mac PMMS, week ending October 15, 2026)
Michigan first-time buyer programs
- MSHDA MI Home Loan — MSHDA’s affordable 30-year fixed-rate mortgage (FHA/VA/USDA/conventional) for first-time buyers statewide (repeat buyers in targeted areas), with county income limits and a $566,355 statewide sales-price cap (after June 1, 2026). Official site
- MI 10K Down Payment Assistance Loan — Up to $10,000 toward down payment, closing costs, and prepaids as a 0%-interest, no-monthly-payment second loan, repaid only on sale, refinance, payoff of the first mortgage, or loss of owner-occupancy; must pair with a MI Home Loan. Official site
How to use this calculator
Start with Michigan’s median home price (pre-filled above) or type the price of a home you’re eyeing. The calculator assumes 20% down — the threshold that avoids private mortgage insurance on conventional loans — and applies Michigan’s median property tax rate and average insurance premium so the monthly figure reflects the true cost of owning, not just principal and interest. Adjust the rate to a quote you’ve received; even half a point moves the payment by hundreds on a Michigan-priced home. Compare a 15-year term against 30 years to see the lifetime-interest tradeoff before you commit.
Worked example: a median Michigan home
Take a median-priced Michigan home at $266,292. With 20% down ($53,258), the loan amount is $213,034. At 7.40% (Freddie Mac PMMS, week ending October 15, 2026) on a 30-year fixed term, principal and interest come to $1,475.00/month. Add property tax of about $264.07/month (1.19% of $266,292, divided by 12) and insurance of about $88.00/month ($1,056 a year), for a total estimated payment of $1,827.07/month. Over 30 years, total interest would be about $317,967. Your rate, down payment, and county tax bill will move these numbers — use the calculator above with your own figures.
What is the conforming loan limit in Michigan for 2026?
The 2026 baseline conforming loan limit for a one-unit property is $832,750 across most of Michigan, per the FHFA’s November 2025 announcement.
How much are property taxes in Michigan?
The median effective property tax rate in Michigan is about 1.19% of a home’s assessed value (Tax Foundation (Facts & Figures 2026, 2024 ACS data, effective rate on owner-occupied housing), 2024). On a $266,292 home, that’s roughly $3,169 a year, or $264.07 a month — already included in the calculator above. Actual bills vary by county and municipality.
Can my Michigan property taxes spike when home values jump?
No — Proposal A (1994 constitutional amendment) caps annual taxable-value growth at the lesser of CPI inflation or 5% while you own the home (2.7% cap for 2026); but taxable value ‘uncaps’ to 50% of market value (SEV) in the year after a sale, so buyers should not budget off the seller’s old tax bill.
What is Michigan’s Principal Residence Exemption (PRE)?
Owner-occupants of a principal residence are exempt from up to 18 mills of local school operating tax — about $18 per $1,000 of taxable value (roughly $1,800 per $100,000); claim it via Form 2368, one PRE per owner.