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Shopping around for a mortgage lender is the best way to keep your costs as low as possible when buying a new home in Michigan. Considering that this state has some of the highest property taxes in the country, you can still save money by keeping your mortgage rates as low as possible for your credit situation.
Living in Michigan may be more affordable than you think. Here are a few cities that offer great bang for your buck.
Right by Lake Huron, Alpena has lots of retirees among its 10,034 residents, and offers lots of outdoor activities and access to nature. The median home value in Alpena, according to Niche, is $74,600, significantly lower than the national median of $217,500. Although Michigan has some of the highest property taxes in the country, Alpena County charges 1.19% -- one of the lowest statewide rates (according to Tax-rates.org).
Muskegon Charter Township is a suburb of Grand Lakes, and Niche ranks it in third place on its list of suburbs with the lowest cost of living in Michigan. The median home value is much lower than the national average at $93,400. With that, plus property taxes of 1.48% in Muskegon County, it makes sense why 83% of residents own their homes. There are plenty of family-friendly amenities and highly rated schools, offering residents plenty to like about this suburb.
Bay City is on Saginaw Bay, Lake Huron, and is ranked 17th among suburbs with the lowest cost of living in Michigan. It offers above-average schools, plus plenty of parks and waterfront activities for its 33,167 residents. There's a likely reason why 68% of its residents own their homes: The median home value is an affordable $66,800, and property taxes are 1.63% in Bay County, according to Tax-rates.org.
Niles Township borders South Bend, Indiana, and is part of Berrien County. Residents might enjoy its slower pace -- there aren't the usual amenities a large city has to offer, but there are plenty of outdoor activities. The median home value in Niles Township is $115,400, and average property taxes are 1.17% of a home's fair market value. Although home prices are higher than others on our list, it still ranks in the top 35 for most affordable suburbs in Michigan.
Located in central Michigan, Midland has a population of 41,920, comprised of many families and young professionals. Homes have a median value of $150,400, which is much lower than the national average. With a combination of low crime rates, highly rated public schools, a diverse mix of residents, and plenty of amenities, it makes sense that 65% of residents own their homes. Midland County charges an average of 1.47% in property taxes, lower than in much of the state.
Wherever you end up purchasing a home in Michigan, you'll need things like a steady stream of income and a strong credit score to qualify for the best mortgage rates. It's a good idea to shop lenders to get the best deal possible.
If you want to uncover more about the best mortgage lenders for low rates and fees, our experts have created a shortlist of the top mortgage companies. Some of our experts have even used these lenders themselves to cut their costs.
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