Mortgage Rates in Bay City, Michigan — March 2026
Updated March 2026 | Based on Bay City market data and regional lending conditions
Bay City is a growing city in Michigan with a population of 32,612. The current 30-year fixed mortgage rate in Bay City is 6.11%, which is 0.54% below the national average. With a median home price of $115,000 and a 20% down payment of $23,000, homebuyers can expect a monthly principal and interest payment of approximately $558.
Current Mortgage Rates in Bay City, MI
Below are the current average mortgage rates available in the Bay City area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.11% | 6.65% | -0.54% |
| 15-Year Fixed | 5.35% | 5.89% | -0.54% |
| 5/1 ARM | 5.61% | 6.15% | -0.54% |
| FHA | 5.71% | 6.25% | -0.54% |
| VA | 5.51% | 6.05% | -0.54% |
| Jumbo | 6.31% | 6.85% | -0.54% |
Bay City Housing Market Overview
The Bay City housing market offers relatively affordable housing compared to many major cities. The median household income in Bay City is $35,000, and the cost of living index is 79 (national average = 100). Based on the 28% affordability rule, the median income in Bay City is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Bay City
Based on the median home price of $115,000 with 20% down ($23,000), here is what you can expect to pay monthly in Bay City:
15-Year vs. 30-Year Mortgage in Bay City
Choosing a 15-year mortgage in Bay City at 5.35% instead of a 30-year at 6.11% would save you $66,960 in total interest over the life of the loan. However, your monthly payment would be $744 instead of $558 — an increase of $186 per month.
Calculate Your Bay City Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Bay City
What are the current mortgage rates in Bay City, MI?
As of March 2026, the average 30-year fixed mortgage rate in Bay City, Michigan is 6.11%, while the 15-year fixed rate is 5.35%. FHA loans average 5.71% and VA loans 5.51%. These rates are 0.54% below the national average of 6.65%.
How much is a monthly mortgage payment in Bay City?
Based on the median home price of $115,000 with 20% down, the estimated monthly mortgage payment in Bay City is $558 for principal and interest. Including property taxes of $153/month, the total monthly housing cost is approximately $711.
What income do I need to buy a home in Bay City?
Using the 28% rule, you would need an annual income of approximately $30,471 to afford the median-priced home in Bay City at $115,000. The median household income in Bay City is $35,000. The median income is currently sufficient to meet this threshold.
Is Bay City a good place to buy a home in 2026?
Bay City offers a below-average cost of living with a cost of living index of 79 (national average = 100). The property tax rate in Michigan is 1.6%, which is above the national average. Bay City has a population of 32,612 and offers a very affordable lifestyle.
Mortgage Rates in Other Michigan Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Bay City, Michigan area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.