Michigan Refinance Rates & Programs 2026

Michigan offers affordable housing and moderate refinancing costs. From Detroit to Grand Rapids and the Upper Peninsula, here's what you need to know about refinancing in the Great Lakes State.

Current Michigan Refinance Rates

As of March 2026:

| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |

Use our refinance calculator.

Michigan-Specific Refinance Programs

Michigan State Housing Development Authority (MSHDA)

MSHDA programs:

• Down payment assistance for purchases
• If you used MSHDA assistance, check subordination before refinancing

Mortgage Credit Certificate: MCCs provide up to $2,000 annual tax credits.

USDA Refinancing

Much of Michigan outside Detroit, Grand Rapids, Lansing, and Ann Arbor qualifies for USDA loans.

FHA to Conventional

Michigan has high FHA volume. If you have 20%+ equity, refinancing to conventional eliminates mortgage insurance and saves $75-$200 monthly.

Cost of Refinancing in Michigan

Moderate costs:

| Cost Item | Typical Amount | |-----------|---------------| | Lender origination fee | $0 - $2,000 | | Appraisal | $400 - $600 | | Title insurance | $700 - $1,200 | | Recording fees | $30 - $60 | | Total typical closing costs | $3,500 - $6,500 |

Michigan has no state mortgage tax on refinances.

Use our break-even calculator.

When to Refinance in Michigan

Refinance if rates dropped 0.75%+, you want to eliminate PMI, or consolidate debt. See our cash-out guide.

Types of Refinance Available

Conventional, FHA Streamline, VA IRRRL, USDA Streamlined, Cash-Out all available.

Michigan Refinance FAQ

1. How long does refinancing take? 30-40 days. Detroit metro may be 30-35 days; UP may take longer.

2. Will property taxes change? No. Michigan property taxes vary by locality but refinancing doesn't trigger reassessment.

3. Can I refinance a property with well/septic? Yes. Common in Michigan. Expect well test ($100-$200) and septic inspection ($200-$400).

4. What credit score needed? 580 FHA, 620 conventional, 740+ best rates.

5. Can I keep my MSHDA MCC? Yes, with participating lender.

Bottom Line

Michigan's moderate costs make refinancing attractive when rates drop 0.75%+.

Get quote: See rates here.

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About the Author: Bill McCoy, licensed mortgage broker, 15 years experience.