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Mortgage Calculator &
Closing Costs: Dearborn, MI

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

Median Home Price
$195K
Population
110K
Avg Monthly Rent
$1,120
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 Dearborn.
Dearborn vs Michigan Median
The median home price in Dearborn is $195,000, which is 19% below the Michigan state median of $240,000.

Mortgage Calculator — Dearborn, MI

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

$
$39,000
%
%
years
MI avg
%
$
Monthly Payment (PITI)
$1,386
Principal + Interest + Tax + Insurance + PMI
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Principal & Interest
$986
per month
Taxes & Insurance
$400
per month
Total Interest Paid
$199K
over 30 years
Total Loan Cost
$355K
all payments
Payment Breakdown
Loan Amount$156,000
Principal & Interest$986
Property Taxes$250
Homeowners Insurance$150
Total Monthly PITI$1,386

Closing Costs — Dearborn, MI

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

$
%
Michigan: Avg closing costs 1.5% of price. Transfer tax: 0.86%.
Estimated Closing Costs
$10,001
5.1% of purchase price
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Lender Fees
$1,829
origination, underwriting
Third-Party
$2,425
appraisal, title, inspection
Government Fees
$1,677
transfer taxes, recording
Prepaids + Escrow
$4,070
taxes, insurance, interest
Itemized Costs
Loan Origination (0.8%)$1,404
Underwriting Fee$350
Credit Report$75
Appraisal$550
Home Inspection$450
Title Search + Insurance$1,275
Recording Fee$150
Transfer Tax$1,677
Prepaid Taxes (3 mo)$751
Prepaid Insurance (12 mo)$1,800
Prepaid Interest (15 days)$469
Escrow Reserves$1,051
Total Closing Costs$10,001

Monthly Payment Scenarios — Dearborn

Three down payment scenarios for a $195K home using Michigan's 1.54% tax rate and $1,800/yr insurance.

5% Down
$1,679/mo
Down: $9,750
Loan: $185K
P&I: $1,171
Tax: $250
Insurance: $150
PMI: $108
10% Down
$1,612/mo
Down: $19,500
Loan: $176K
P&I: $1,109
Tax: $250
Insurance: $150
PMI: $102
20% Down (No PMI)
$1,386/mo
Down: $39,000
Loan: $156K
P&I: $986
Tax: $250
Insurance: $150

Income needed (28% rule): $59K/year with 20% down, $69K/year with 10% down.

Rent vs Buy in Dearborn

Rent
$1,120/mo
vs
Buy (10% down)
$1,612/mo
Price-to-rent ratio: 14.5With a ratio under 15, buying in Dearborn is likely more cost-effective than renting if you plan to stay 3+ years. The monthly cost of buying is $492 more than renting, but you build equity with every payment.

Run a detailed Rent vs Buy analysis →

Buying a Home in Dearborn, Michigan

The median home price in Dearborn is $195,000, 19% below the Michigan state median of $240,000. With a population of 109,976, Dearborn is a mid-size city where home prices tend to be more accessible than in many parts of Michigan.

Property taxes in Michigan average 1.54% annually. This higher-than-average tax rate means a $195,000 home in Dearborn would carry roughly $250/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 Dearborn is $1,120/month. With a price-to-rent ratio under 15, buying may be more cost-effective than renting in Dearborn over the long term.

Dearborn offers strong affordability. With median prices under $250K, first-time buyers have realistic paths to homeownership, especially combined with Michigan's MSHDA DPA program.

Run a Rent vs Buy analysis
Compare total costs of renting vs buying in Dearborn.
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