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Michigan vs Montana:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Michigan and Montana. Updated for 2026.

MetricMichiganMontana
Median Home Price$240K$430K
Property Tax Rate1.54%0.74%
Avg Closing Costs$4K$6K
Closing Cost %1.5%1.5%
Transfer Tax0.86%None
Homeowners Insurance$1,800/yr$2,100/yr
First-Time Buyer Program
MSHDA DPA
Up to $7,500 DPA
MBOH Regular Bond Program
Up to $15,000 DPA
Verdict

Michigan wins 3 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 Montana. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Michigan
Home Price$240,000
Down Payment (10%)$24,000
Loan Amount$216,000
Monthly P&I$1,365
Monthly Property Tax$308
Monthly Insurance$150
Monthly PMI$90
Total PITI$1,913/mo
Annual property tax: $3,696
Montana
Home Price$430,000
Down Payment (10%)$43,000
Loan Amount$387,000
Monthly P&I$2,446
Monthly Property Tax$265
Monthly Insurance$175
Monthly PMI$161
Total PITI$3,048/mo
Annual property tax: $3,182

Buying in Michigan saves you approximately $1,135/month ($13,620/year) compared to Montana, based on median home prices with identical loan terms.

Which State Is Right for You?

Michigan offers meaningfully lower home prices than Montana, with median prices running 44% less ($190K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Montana may find Michigan far more accessible, particularly when combined with local down payment assistance programs.

Montana has a moderate property tax advantage at 0.74% versus Michigan's 1.54%. While the rate gap of 0.80% may seem small, it translates to an annual difference of approximately $514 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $4K in savings.

Both states offer down payment assistance for first-time buyers. Michigan's MSHDA DPA provides Up to $7,500 DPA, while Montana's MBOH Regular Bond Program offers Up to $15,000 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.

Key Takeaway

The bottom line: Michigan homes cost $190K less than Montana on average. That translates to roughly $1,135 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.

Compare Other States

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