Buying a home in Mississippi
According to Zillow, the typical home value in Mississippi is lower than the typical value of $349,816 across the US. The typical home value in Mississippi is $161,862, and home values have increased 15.2% over the past year.
Historic mortgage rates for Mississippi
By looking at the average mortgage rates in Mississippi since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic Mississippi mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
To see how today’s mortgage rates will affect your finances, use Insider’s free mortgage calculator.
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
Plug in today’s rates and term lengths to understand how they can alter your monthly payments. By clicking on “More details,” you’ll also find tips for saving money on your mortgage.
Mississippi first-time homebuyer programs
You may eligible for one or more of the following programs from the Mississippi Home Corporation:
- Smart Solution: Get a 30-year fixed-rate mortgage and receive a 3.5% loan for down payment assistance. The down payment loan will have the same interest rate as your mortgage, and you’ll pay back the loan over 10 years.
- Housing Assistance for Teachers: The state will give you a $6,000 grant toward your mortgage costs if you’re a public school teacher in certain counties and subject areas. You don’t need to repay this grant.
- MRB 7: Borrow up to $7,000 for down payment assistance. You won’t pay any interest, and you’ll pay off the loan when you sell, refinance, or completely pay off your mortgage.
- Mortgage Credit Certificate: Claim 40% of the interest you pay on your mortgage on your federal taxes, up to $2,000 per year. You can combine the MCC program with the Mississippi Home Corporation’s other assistance loans.
- Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan.
- United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
- Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in Mississippi
Mortgage refinance rates are at all-time lows right now, so it could be a good idea to switch your current mortgage for one with a better interest rate — especially if the new rate would be significantly lower.
You may decide to refinance with the same lender that gave you your initial mortgage, but it’s not always the best idea. A different lender may offer you a better deal the second time around. Shop around for a company that will offer the best interest rate and charge relatively low fees.
How to get a low interest rate on your mortgage
Here are some tips for landing a good interest rate on your mortgage:
- Save more for a down payment. With a conventional loan, you may be able to put down as little as 3%. But lenders reward a higher down payment with a better interest rate. Mortgage rates should stay low for a while, so you may have time to save a bigger down payment.
- Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But you can land a better interest rate with a higher score. The most important factor for boosting your score is to pay all your bills on time.
- Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less for a conventional mortgage, but a lower DTI can result in a lower rate. To improve your DTI, pay down debts or consider opportunities to increase your income.
- Choose a federally backed mortgage. If you’re qualified, you might think about a USDA loan (aimed at low-to-moderate-income borrowers buying in a rural area), a VA loan (designed for military members and veterans), or an FHA loan (not designated for any particular group). These loans often come with lower interest rates than conventional mortgages. Additionally, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
Mortgage and refinance rates by state