Michigan closing cost calculator

Michigan buyers pay no transfer or mortgage tax. Property taxes come in summer and winter bills, and how they’re prorated depends on the contract.

Michigan’s rules checked September 30, 2026Runs in your browser. Nothing you type is saved.

State Closing date

Michigan: Real estate transfer tax: 0.86% of the price, and the seller usually pays it. Owner’s title is usually paid by the seller.

Purchase price

$

The loan

Loan type

Down payment

Interest rate

%

Term

Estimated cash to close $56,548

2.2%closing costs

Purchase price$255,000
Down payment (20%)$51,000
- Loan amount$204,000
Loan costs+$2,740
- Origination and lender feesest.+$2,040
- Appraisalest.+$700
Title and closing+$1,350
- Lender’s title insuranceest.+$500
- Settlement or escrow feeest.+$600
- Recording feesest.+$250
Taxes−$2,361
- Property tax credit from the sellerest.−$2,361
Prepaids and escrow+$3,369
- Homeowner’s insurance, first yearest.+$1,500
- Prepaid interest (27 days)est.+$981
- Property tax escrow (3 months)est.+$638
- Insurance escrow (2 months)est.+$250
Other costs+$450
- Home inspectionest.+$450
Cash to close$56,548

Estimated monthly payment$1,627

Principal and interest$1,289
Mortgage insurance$0
Property taxes$213
Insurance$125
HOA dues$0

An estimate, not a Loan Estimate or Closing Disclosure. Your lender's Loan Estimate and the title or escrow company give the final figures. Rates, fees and insurance vary by lender and property.

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A Michigan purchase, worked out

The calculator opens on $255,000, about the median value of an owner-occupied home in Michigan ($254,200, 2024 Census estimate), with 20% down on a 30-year conventional loan and a closing on December 5, 2026.

The buyer brings about $56,548: $51,000 down and $5,548 in closing costs, 2.2% of the price. Michigan charges the buyer no state transfer or mortgage tax, though a county or city can. The monthly payment comes to about $1,627, with property tax and insurance.

Cash to close on $255,000, 20% down
Down payment	$51,000
Origination and lender feesest.	+$2,040
Appraisalest.	+$700
Lender’s title insuranceest.	+$500
Settlement or escrow feeest.	+$600
Recording feesest.	+$250
Property tax credit from the sellerest.	−$2,361
Homeowner’s insurance, first yearest.	+$1,500
Prepaid interest (27 days)est.	+$981
Property tax escrow (3 months)est.	+$638
Insurance escrow (2 months)est.	+$250
Home inspectionest.	+$450
Cash to close	$56,548

Estimates are tagged “est.”; Michigan’s taxes follow its rules. A “−” is a credit, like the seller’s share of this year’s property tax where it’s paid after the year ends.

At other prices

Michigan has no state tax of its own on the buyer. Each row has 20% down on a conventional loan.

Price	Michigan’s buyer taxes	Closing costs	Cash to close	Monthly payment
$250,000	—	$5,522	$55,522	$1,597
$500,000	—	$7,960	$107,960	$3,153
$750,000	—	$10,850	$160,850	$4,730
$1,000,000	—	$13,800	$213,800	$6,307
$2,000,000	—	$25,599	$425,599	$12,613

Buying in Michigan: what to know

No buyer’s taxes

Michigan has no buyer-paid transfer or mortgage tax. Buyers pay recording fees only.

Real estate transfer tax

Michigan law puts both transfer taxes on the seller: the state tax of $3.75 per $500 (0.75%) and the county tax of $0.55 per $500 (0.11%), 0.86% together, so $2,580 on a $300,000 sale. There are no city transfer taxes.

Title insurance

In Michigan the seller customarily furnishes and pays for the buyer’s owner’s policy, as standard purchase agreements provide.

Who runs the closing

Title companies conduct most Michigan closings. An attorney isn’t required.

Property taxes and escrow

Michigan sends two bills a year: summer taxes are due July 1 and winter taxes are billed December 1. Proration depends on local custom and the purchase agreement; some treat each bill as paid in advance, others prorate on a fiscal-year or arrears basis.

Local differences

Counties of 2 million or more can charge a higher county rate. That historically meant Wayne County, whose population has since dropped below 2 million, so confirm its current rate with the register of deeds.

Buying in Michigan: questions

Does the buyer pay transfer tax in Michigan?

No. Michigan law puts the state and county transfer taxes on the seller.

How are summer and winter taxes prorated in Michigan?

It depends on local custom and your purchase agreement. Some areas treat each bill as paid in advance for the period after its due date; others prorate on a fiscal-year or arrears basis.

Is there a mortgage tax in Michigan?

No. Michigan buyers pay recording fees on the mortgage but no tax on the loan.

How much are closing costs in Michigan?

On a $255,000 home with 20% down on a conventional loan, the calculator’s estimates put a Michigan buyer’s closing costs at about $5,548, or 2.2% of the price, and cash to close at $56,548. Michigan charges the buyer no state transfer or mortgage tax, though a county or city can. Lender fees, insurance and the rate vary, so put in your lender’s Loan Estimate for a closer number.

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