Current Mortgage Interest Rates in Michigan — 2023
What Are Today’s Home Interest Rates in Grand Rapids?
Below is a mortgage interest rates chart* for rate trends in Grand Rapids, Michigan. The rates below are for educational purposes only. Displayed figures indicate trends and are not rates offered by Treadstone Funding to any particular borrower, as interest rates are affected by factors including credit, loan amount, and more.
*Displayed interest rates represent industry trends, and do not represent rates offered by Treadstone Funding or Neighborhood Loans. For an accurate, up-to-date quote on mortgage rates, please talk to a licensed Loan Officer.
What is a Mortgage Interest Rate?
A mortgage interest rate is a percentage of your total loan balance. It’s paid on a monthly basis, along with your principal payment, until your loan is paid off. It’s a component in determining the annual cost to borrow money from a lender to purchase a home or other property. For example, If your interest rate is 5%, you will owe the lender 5% of your loan balance every year until the loan is paid off.
This rate is generally determined by several factors in the economy and investment activity, as well as individual qualifications. The core factor? Fannie Mae and Freddie Mac bundle mortgage loans, then sell them to investors. Whatever interest rate those investors are willing to pay for mortgage-backed securities determines what rates lenders can set on their loans.
What is the Difference Between Rate and APR?
When shopping for a home, you may see two separate figures expressed as a percentage: the mortgage interest rate and the APR.
APR stands for “annual percentage rate”. An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.
How Does the Interest Rate Affect My Home Loan in West Michigan?
The higher the interest rate, the higher your monthly payment may be.
On a 30-year fixed-rate mortgage with a loan amount of $160,000 in Michigan, a 0.1% change in rate affects your monthly payment by about $10-20, according to Money Under 30.
Remember, time your life— not the market. Waiting to buy for a lower interest rate could cost you more, especially since interest rates are trending upward. Interest rate should not be the deciding factor on your Michigan home purchase. Talk to a Loan Officer to make a game plan for your home purchase, no matter your interest rate!
How Do I Get a Lower Interest Rate?
Even though mortgage interest rates are determined by market trends, there are several things you can do to lower your interest rate.
- Shorten your loan term
- Place a larger down payment
- Improve your credit health
- Purchase discount points on your loan
Questions? We’re here for you. Shoot us a message with your questions!
FAQs about Interest Rates
What are your current interest rates?
Just like gas prices, interest rates fluctuate daily and is based on your specific scenario. Please contact one of our Licensed Loan Officers to get a quote.
How does credit affect our interest rates?
Many factors come into play when determining your interest rate, with your credit score being only one part of this equation. In general, a higher credit score results in a lower interest rate.
What is the difference between my Interest Rate and APR?
An interest rate is a percentage of the principal balance on your loan charged on an annual basis. Interest is paid monthly and amortized over the term of the loan. APR (annual percentage rate) factors in all the costs and fees of the loan and expresses them as a percentage. It is to be expected that the APR is higher than the interest rate.
What programs are there for first-time home buyers?
Conventional mortgage loan investors Fannie Mae and Freddie Mac offer first-time home buyer loan programs, known as Homeready and HomePossible, respectively. There are income limits and credit requirements that must be met to qualify. These programs offer more favorable interest rates, lower private mortgage insurance, and flexibility on the amount you can put down.
Are you ready to jump into the mortgage process?
*Mortgage interest rates, figures, and examples are for educational purposes only. No commitment to lend implied. Talk with a Loan Officer to determine your eligibility.