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% *
* Property tax shown is the Michigan state average effective rate. Actual rates vary by county, city, and school district — check with your local assessor for exact rates in Ann Arbor.
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.
Three down payment scenarios for a $425K home using Michigan's 1.54% tax rate and $1,800/yr insurance.
5% Down
$3,483/mo
Down: $21,250
Loan: $404K
P&I: $2,552
Tax: $545
Insurance: $150
PMI: $236
10% Down
$3,336/mo
Down: $42,500
Loan: $383K
P&I: $2,418
Tax: $545
Insurance: $150
PMI: $223
20% Down (No PMI)
$2,844/mo
Down: $85,000
Loan: $340K
P&I: $2,149
Tax: $545
Insurance: $150
Income needed (28% rule): $122K/year with 20% down, $143K/year with 10% down.
Rent vs Buy in Ann Arbor
Rent
$1,650/mo
vs
Buy (10% down)
$3,336/mo
Price-to-rent ratio: 21.5 — At a ratio above 20, renting may be more economical in Ann Arbor for shorter stays. Buying costs $1,686 more per month than renting, and it typically takes 5-7 years to break even on the transaction costs of buying.
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.