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Purchasing a home in Michigan can save you a substantial sum of money compared to the average American homebuyer. As of July, the state’s average sales price of $273,661 was significantly lower than the nationwide average of $520,500.
Keep in mind that those are just averages, and home prices can change drastically based on location. For example, the Emmett Association of Realtors, at the northern end of the lower peninsula, reported an average sales price of $552,945 for the month of July, while the Detroit Board of Realtors reported an average of $118,798.
Regardless of where you decide to buy a home, you might be able to afford more than you think. Choosing the right mortgage loan or taking advantage of available down payment and closing cost assistance programs can help you make the most of your budget.
What Are Today’s Mortgage Rates in Michigan?
For Tuesday, September 13, 2022, here are the current mortgage rates in Michigan. The average 30-year fixed mortgage rate is 6.160%. The average 30-year fixed mortgage refinance rate is 6.130%. Today, the average 15-year fixed mortgage rate is 5.480%.
Looking at variable rate loans, the average 5/1 adjustable-rate mortgage (ARM) rate is 4.630%.
This information is from Bankrate’s latest survey of the nation’s largest mortgage lenders.
Current Mortgage Rates in Michigan
How Much of a Mortgage Do You Need to Buy a Home in Michigan
The amount you’ll need for a down payment is largely determined by the type of loan you choose. Some mortgages, such as VA loans, may not require any down payment at all, while other types of home loans may require as much as 20%.
Conventional loans allow for as little as 3% for a down payment, although 20% is needed to avoid the added monthly expense of private mortgage insurance. FHA loans require a slightly larger down payment of 3.5%, but can be a good option if you can’t get approved for a conventional loan.
If you have enough cash, you could opt for a larger down payment to reduce your monthly payments. However, you’ll need to consider your personal circumstances and goals to determine if you’re comfortable with parting with that cash in exchange for a lower mortgage payment.
Median Home Price
Types of Home Loans Available in Michigan
It’s important to weigh the benefits and drawbacks of various lenders and loan programs to ensure you are making the best financial decision, says Dina Maeweather, a Realtor at Keller Williams. “While many buyers believe that shopping for the lowest possible interest rate is the best way to shop for a mortgage loan, the type and terms of the loan you select can often save you the most money.”
Common loans available in Michigan include conventional loans, FHA loans, and VA loans. In addition to having a combination of different rates and fees, you may also be able to choose the length of your loan and whether you want a fixed or adjustable rate mortgage, so it’s a good idea to consider multiple mortgage lenders before making any final decisions.
Conventional loans are a popular choice for many borrowers, as these types of mortgages can offer highly competitive interest rates. It’s possible to qualify with just a 3% down payment, a credit score of at least 620, and a debt-to-income ratio below 45%. However, many lenders utilize an automated system to evaluate your loan as a whole, so it is possible that you may not qualify even if you meet those requirements.
While conventional loans can require just a 3% down payment, 20% is needed if you want to avoid the added monthly expense of private mortgage insurance (PMI). However, if you’re not able to come up with a 20% down payment up front, know that you can ask your lender to get rid of PMI at a later date, once you have 20% equity in the home.
If you don’t qualify for a conventional loan, consider looking into an FHA loan. FHA loans are insured by the Federal Housing Administration and offer more flexibility on things like credit score and debt-to-income requirements. If you can come up with a 3.5% down payment, you can qualify with a credit score of 580. But with a 10% down payment, you can qualify for an FHA loan with a credit score as low as 500.
If you’re considering an FHA loan because of issues qualifying for a conventional mortgage, be aware that these types of loans can be more expensive. FHA loans require upfront mortgage insurance in addition to monthly mortgage insurance premiums, and removing mortgage insurance from an FHA loan can be more difficult than removing it on a conventional loan.
Insured by the Department of Veterans Affairs, VA loans are typically only available to borrowers with qualifying military service. However, those who are eligible can use a VA loan to get into a home with no down payment and no requirement for monthly mortgage insurance.
When it comes to qualifying for a VA loan, lenders can each have their own unique requirements with regards to things like debt-to-income ratio and credit scores. So if you are turned down for a VA loan, it’s worth trying another lender that might have more flexible criteria.
First-Time Homebuyer Programs in Michigan
In deciding how much house you can afford, don’t forget to look into first-time homebuyer programs. Several of these programs exist for the state of Michigan, and can provide you with funds needed to cover down payment requirements or closing costs.
- MI Home Loan: Offered by the MI State Housing Development Authority (MSHDA), first-time homebuyers and repeat homebuyers can work with a participating lender to take advantage of this program. A minimum credit score of 640 is required, and household income limits apply based on family size and property location.
- MI DPA Loan: The MSHDA also provides programs offering down payment assistance up to $10,000. Borrowers must take an approved Housing Education Class to be eligible.
- Homebuyer Assistance Fund: Available for those located in Grand Rapids, the Homebuyer Assistance Fund provides up to $7,500 to cover down payment requirements, closing costs, and prepaid expenses. You must meet income and asset limits, have not owned a home in the last three years, and agree to occupy the property for at least five years.
- Mortgage Credit Certificate: A mortgage credit certificate (MCC) can offer a federal tax credit, minimizing your total out-of-pocket expenses. Household income limits do apply, but if eligible, you can get a credit of 20% of your annual mortgage interest paid against your year-end tax liability.
First-time homebuyer assistance programs can help keep more money in your pocket by covering closing costs, down payment requirements, and even reducing your year-end tax liability.
1 person dead in accident at Michigan air show involving jet-powered truck
One person is dead after an accident during the “pyrotechnic portion” of an air show in Michigan, police said.
The incident occurred Saturday shortly after 1 p.m. at the Battle Creek Field of Flight Air Show and Balloon Festival, held at Battle Creek Executive Airport.
Chris Darnell, 40, died while driving a race truck dubbed the Shockwave Jet Truck during the air show, police said in an update Saturday evening. The accident is under investigation.
Dramatic video by attendees of the air show captured the truck racing two aircraft on the runway before the accident occurred. A small fire behind the truck can be seen as the vehicle slides past a large fireball and crashes.
“Oh boy, we’ve got an incident here with our Shockwave out here at Air Show Center,” the announcer can be heard saying following the accident.
The Battle Creek Fire Department, Battle Creek Police Department and Federal Aviation Administration responded to the scene, police said.
Police have not released any further information amid the investigation.
The remainder of Saturday’s air show was canceled “out of respect for the incident that has occurred,” Battle Creek Field of Flight said in a statement. Saturday evening’s activities were scheduled to resume at the festival, which runs through Monday.
Shockwave, a custom-built race truck, is owned by Darnell Racing Enterprises, based in Springfield, Missouri. ABC News has reached out to the company for comment.
The truck, which was equipped with three flame-shooting jet engines, was capable of racing at over 350 mph, according to its owners. It frequently appeared at air show and drag racing exhibitions across the country.
Darnell was involved in motorsports “his entire life,” according to a bio on Darnell Racing’s website, and worked with his father in the business.
Michigan judge orders release of Oxford school shooting evidence, including surveillance footage
Oakland County Circuit Judge Rae Lee Chabot signed an order Thursday requiring the Oakland County Sheriff’s office, the county and the Oxford Community School District to release evidence, including video footage, related to the November school shooting at Oxford High School in Michigan.
The ruling was made as part of a civil lawsuit brought by families of victims of the shooting against school officials, accused shooter Ethan Crumbley and his parents. Court documents show that the victims’ families subpoenaed records related to the shooting and surrounding events, but the school district did not hand over the documents by the deadline set.
Ethan Crumbley, a student at the school, is charged with 24 counts after he allegedly shot and killed four of his classmates on Nov. 30.
His parents, Jennifer and James Crumbley, are also charged with four counts of involuntary manslaughter after allegedly failing to recognize warning signs about their son in the months before the shooting.
All three Crumbleys have pleaded not guilty. Judge Kwame Rowe on Thursday postponed Ethan Crumbley’s trial to next year.
The families of the victims had asked Judge Chabot to order the school district, Oakland County and the Oakland County Sheriff’s department to hand over evidence.
The district and sheriff’s department had filed requests to stop the release of the evidence, but Chabot denied those requests.
“We fully expect that Oxford Community Schools, Oakland County/Oakland County Sheriff’s Office will fully comply with the law and Judge Chabot’s order. Our clients have waited over seven months to see the full and complete investigation with their own eyes; that’s long enough,” Ven Johnson an attorney for the victims families said in a statement to ABC News.
Sheriff Michael Bouchard, whose department has led the investigation into the shooting, told ABC News that he will meet with lawyers before settling on a timeline for the release of the footage.
Bouchard said he has no issue following the judge’s order, but expressed concern that publicizing the video might complicate efforts to sit juries in the trials against the alleged shooter and his parents, both of which are scheduled for later this year.
The decision came as the Oxford Community School District said Wednesday that it hired Guidepost Solutions and Varnum law to investigate the events surrounding the shooting. The district said it will make all materials and information available to the investigative team.
The district said Guidepost will share the report with the community at the same time it is shared with the board and school administration.
“Of course, independent investigations like these take time, and we will not sacrifice the integrity of the investigation with an artificial timeline. With that said, the investigation team is getting in place, getting up to speed, and getting ready to begin – and they will conduct and complete their work with deliberate care and speed,” Tom Donnelly, the school board president, said in a letter to the community.
The district said it will also launch a website that covers its response to the shooting that it expects to be live in about a month. It also set up a secure email that would allow students, family members and members of the community to share information or request a meeting with investigators.
At least 1 dead, 44 injured after tornado strikes northern Michigan
One person died, multiple people were injured and “heavy damage” reported after a destructive tornado tore through northern Michigan Friday afternoon, authorities said.
A Munson Healthcare spokesman confirmed that there had been one death and 44 injuries. The spokesperson could not speak to the severity of the injuries.
The injured are being treated at four separate hospitals. 23 patients have been admitted at Otsego Memorial Hospital, 12 patients at Grayling Hospital, eight patients at McLaren Northern Michigan Petoskey, and one patient Munson Medical Center Traverse City.
Michigan State Police for the Seventh District confirmed that a tornado touched down in Otsego County.
“Trees and power lines blocking roadways. Multiple homes and businesses damaged,” the agency said on Twitter. “Avoid the Gaylord area. Emergency crews are responding.”
State police said there was “heavy damage” throughout the area and that an unspecified number of people were transported to local hospitals with injuries.
Residents in Gaylord are asked to shelter in place through 8 a.m. Saturday due to the “ongoing emergency,” state police said.
Images from the scene showed leveled buildings, damaged roofs on businesses, downed trees and cars flipped over.
“My heart goes out to the families and small businesses impacted by the tornado and severe weather in Gaylord,” Michigan Gov. Gretchen Whitmer said on Twitter. “To the entire Gaylord community — Michigan is with you. We will do what it takes to rebuild.”
A severe thunderstorm watch had been issued for the region through the evening, with the National Weather Service warning that “an isolated tornado cannot be ruled out in the greater area.”
William Gretsky contributed to this report.
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