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Mortgage Calculator &
Closing Costs: Ann Arbor, MI

Mortgage payment estimates, closing cost breakdowns, and homebuying data for Ann Arbor, Michigan.

Median Home Price
$425K
Population
124K
Avg Monthly Rent
$1,650
Property Tax Rate
1.54%
Ann Arbor vs Michigan Median
The median home price in Ann Arbor is $425,000, which is 77% above the Michigan state median of $240,000.

Mortgage Calculator — Ann Arbor, MI

Pre-filled with Ann Arbor median home price and Michigan tax/insurance rates. Adjust for your property.

$
$85,000
%
%
years
MI avg
%
$
Monthly Payment (PITI)
$2,844
Principal + Interest + Tax + Insurance + PMI
Principal & Interest
$2,149
per month
Taxes & Insurance
$695
per month
Total Interest Paid
$434K
over 30 years
Total Loan Cost
$774K
all payments
Payment Breakdown
Loan Amount$340,000
Principal & Interest$2,149
Property Taxes$545
Homeowners Insurance$150
Total Monthly PITI$2,844

Closing Costs — Ann Arbor, MI

Estimated closing costs based on Michigan rates and fees applied to Ann Arbor prices.

$
%
Michigan: Avg closing costs 1.5% of price. Transfer tax: 0.86%.
Estimated Closing Costs
$17,109
4.0% of purchase price
Lender Fees
$3,485
origination, underwriting
Third-Party
$3,575
appraisal, title, inspection
Government Fees
$3,655
transfer taxes, recording
Prepaids + Escrow
$6,394
taxes, insurance, interest
Itemized Costs
Loan Origination (0.8%)$3,060
Underwriting Fee$350
Credit Report$75
Appraisal$550
Home Inspection$450
Title Search + Insurance$2,425
Recording Fee$150
Transfer Tax$3,655
Prepaid Taxes (3 mo)$1,636
Prepaid Insurance (12 mo)$1,800
Prepaid Interest (15 days)$1,022
Escrow Reserves$1,936
Total Closing Costs$17,109

Buying a Home in Ann Arbor, Michigan

The median home price in Ann Arbor is $425,000, 77% above the Michigan state median of $240,000. With a population of 123,851, Ann Arbor is a mid-size city where home prices reflect strong demand and local economic factors.

Property taxes in Michigan average 1.54% annually. This higher-than-average tax rate means a $425,000 home in Ann Arbor would carry roughly $545/month in property taxes alone — plan accordingly. Homeowners insurance in Michigan runs approximately $1,800 per year. This is within the normal range nationally.

Average rent in Ann Arbor is $1,650/month. With a price-to-rent ratio above 20, renting could be more economical in the short term — use our Rent vs Buy calculator to model your specific timeline.

Ann Arbor is a higher-cost market. At $425K median, buyers need significant savings or strong income. Down payment assistance through Michigan's MSHDA DPA program becomes especially important.

Run a Rent vs Buy analysis
Compare total costs of renting vs buying in Ann Arbor.
Rent vs Buy Calculator →
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