Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Delaware and Michigan. Updated for 2026.
Michigan wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $240K and lower overall costs, Michigan offers meaningful savings compared to Delaware. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Michigan saves you approximately $514/month ($6,168/year) compared to Delaware, based on median home prices with identical loan terms.
Michigan offers meaningfully lower home prices than Delaware, with median prices running 32% less ($115K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Delaware may find Michigan far more accessible, particularly when combined with local down payment assistance programs.
Delaware has a moderate property tax advantage at 0.56% versus Michigan's 1.54%. While the rate gap of 0.98% may seem small, it translates to an annual difference of approximately $1,708 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $14K in savings.
Closing costs are a one-time but significant expense. Delaware averages $12K in closing costs (3.3% of purchase price) while Michigan averages $4K (1.5%). Much of Delaware's higher costs come from its 4% transfer tax, which adds $14K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, while Michigan's MSHDA DPA offers Up to $7,500 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Michigan homes cost $115K less than Delaware on average. That translates to roughly $514 less per month in total housing costs if you choose Michigan. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.