MichiganMortgageLoan

Rates by city

Mortgage rates in Bay City, Michigan

Updated 4 min read

Bay City anchors the eastern Tri-Cities with waterfront character and some of the most affordable historic housing in Michigan — Victorian-era homes on the Saginaw River at prices that draw restorers and first-time buyers alike.

Median price $130 000
Bay Co. tax ~1.6%
Est. payment $1 059/mo

The Bay City market

Bay City's grand but affordable older housing rewards buyers open to renovation, making FHA 203(k) loans a natural fit, while low prices keep entry accessible. As in other low-priced Michigan cities, some homes fall below lender minimums and route buyers to local institutions.

Neighborhoods buyers ask about: Center Avenue Historic District · Midland Street · South End · Banks · Essexville border

What's different about buying here

Bay City's affordable Victorian-era housing suits FHA 203(k) renovation loans, and much of surrounding Bay County is USDA-eligible for zero-down financing.

Down payment help in Bay City

MSHDA works well in Bay City, and the surrounding Bay County countryside is largely USDA-eligible — so between assistance and zero-down rural loans, cash-to-close hurdles are lower here than the prices alone suggest.

Today's Michigan rates

Statewide survey Updated July 1, 2026
Loan type Rate APR Weekly change
30-Year Fixed 6.45% 6.52% ▾ 0.04 pts
15-Year Fixed 5.72% 5.81% ▾ 0.02 pts
FHA 30-Year 6.12% 6.89% ▾ 0.05 pts
VA 30-Year 6.02% 6.21% ▴ + 0.01 pts

Source: Editorial survey of Michigan lenders; national benchmark: Freddie Mac PMMS. Averages for borrowers with 740+ credit and 20% down; your quote will differ.

Estimate your exact payment with Bay County's tax rate in the Michigan payment calculator, and see whether you qualify for MSHDA down payment help before assuming you need 20% down.

Frequently asked questions

Is Bay City a good market for a fixer-upper?

Yes — its stock of affordable historic homes is ideal for an FHA 203(k) renovation loan, which finances the purchase plus improvements in a single mortgage. That's often the practical route on older homes that need work before they'd pass a standard appraisal.

What is the monthly payment on a typical Bay City home?

On Bay City's median price of about $130 000 with 10% down at today's 6.45% average rate, expect roughly $1 059/month including Bay County property taxes at ~1.6% and insurance.

Are mortgage rates different in Bay City than the rest of Michigan?

The interest rate itself is the same statewide — what changes in Bay City is everything around it: Bay County's ~1.6% effective property tax, local insurance costs, and which down payment assistance programs apply.