Michigan closing cost calculator

The calculator uses a loan with 20% down until you enter your own number. The agent commission line appears only once you enter a rate. The value of the typical Michigan home shown here was $263,760 in September 2026. Here, that amount is rounded to $264,000, and the down payment of $52,800 goes with a loan of $211,200.

The buyer lines add up to $5,867. Cash to close combines your down payment with closing costs, so the total is $58,667. Before any commission and before the existing mortgage is paid off, the seller owes $1,980.

Prepaid interest covers loan interest from your closing date to the last day of that month. The amount you pay depends on your closing date.

Price shapes most of these numbers, so a less expensive home costs less to close. In September 2026, the cheapest third of homes in Michigan had typical values of $142,081, while the priciest third reached $453,054. With 20% down, buyer closing costs run from $4,090 to $9,446 in the calculator.

For a $400,000 home with 20% down, a Michigan buyer pays $7,850, matching the median across all 50 states and DC. Before commission and payoff, the seller's $3,000 is $2,560 higher than the median state figure of $440.

Buyers in nearby states see similar numbers. For the same $264,000 home, costs are $5,867 in Wisconsin, $5,887 in Indiana and $5,875 in Ohio.

Closing costs make up only part of the budget. For an owner-occupied Michigan home, the median property tax bill is $2,904 each year, or about 1.25% of the median home value. Michigan law doesn't require an attorney to be involved in a real estate closing.

Michigan takes this tax once, at the time a home changes ownership. The rate comes to 0.75% of the price. Usually the seller pays it, and it becomes due at the time of recording.

The tax comes to $3,000 on a $400,000 sale, ranking 9th highest of the 36 states, DC included, with a transfer tax. Certain counties also collect an extra tax. Genesee County charges an extra 0.11% of the price, in addition to the state tax.

Buyers benefit here. For mortgages, Michigan applies no transfer tax, so recording your loan brings no tax on the borrowed amount.

Some transfers are exempt from the tax entirely. The state places no tax on transfers from a parent to any of these: child, stepchild or adopted child. Grandchildren are covered too under a similar exemption. This exemption also covers mortgage foreclosures and deeds given in place of foreclosure; it does not cover a later sale made by the foreclosing entity.

A state transfer tax exemption may apply to a seller who used the section 7cc property tax exemption. Whether it applies depends on the home's valuation and sale price; when the exemption applies, refunds can be requested

On its face, the deed must show the full price. Otherwise, the parties submit the required Real Estate Transfer Valuation Affidavit. If you claim an exemption, include it on the deed. The property's county is the only place to buy tax stamps. Write checks payable to the County Treasurer.

It shows up only if you add it. The agent agreement sets the commission, so we leave it out of the calculator until you enter a rate. Across the country, the average buyers' agent commission is 2.42% of the price

At closing, sellers have commission deducted along with the mortgage payoff. This is why seller figures appear as "before commission." To add it to the estimate, enter the commission rate you agreed on.

In the $264,000 example, a title insurance policy for the owner costs $1,109, which equals 0.42% of the sale amount. Which party pays depends on the deal, so the cost may fall on either side of the statement. We show it as a separate line so you can see whether it affects the cash needed at closing.