Overview of Mississippi Mortgages
Mississippi, the Magnolia State, is an attractive place to live that's steeped in America's musical history and civic progress. Homebuyers in Mississippi will find that mortgage rates are a bit higher than average. Mississippi counties' conforming loan limits are standard, as are FHA limits.
|30 year fixed||3.16%||3.16%||0.00|
|15 year fixed||2.58%||2.58%||0.00|
|30 yr fixed mtg refi||3.22%||3.22%||0.00|
|15 yr fixed mtg refi||2.71%||2.71%||0.00|
|7/1 ARM refi||3.63%||3.63%||0.00|
|15 yr jumbo fixed mtg refi||2.50%||2.50%||0.00|
National Mortgage Rates
Historical Mortgage Rates in Mississippi
Mississippi Mortgage Rates Quick Facts
- Median Home Value: $128,200 (U.S. Census Bureau)
- Loan Funding Rate: 50.48% (CFPB)
- Homeownership Rate: 72.7% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,147 (U.S. Census Bureau)
Mississippi, the land of blues, barbeque and beaches, is ideal for the outdoor adventurer. It’s fairly middle of the road for size and population. Mississippi mortgage rates have been a bit unpredictable, falling below, equal to or above the national average over the past 30 years. Recent rates are higher than the U.S. average.
A financial advisor in Mississippi can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Mississippi Historic Mortgage Rates*
|Year||Mississippi Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
Mississippi Mortgages Overview
If you are in the market for a home in the Magnolia State, it’s wise to set a budget before you begin your search. You’ll want to know how much of your monthly income will go toward your mortgage payment. You also might want to secure a mortgage preapproval from a lender to help speed up the homebuying process.
Every county in the state has a standard conforming loan limit of $548,250 and a standard FHA limit of $356,362. The standard loan limits across the state are an indication of the overall affordability of homes in all areas of the Magnolia State.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Mississippi has real estate disclosure laws, meaning the sellers must disclose what defects they know about the property. That’s good news for buyers. But regardless of the laws, it’s still best to opt for a home inspection before officially closing on your home. This protects buyers from uncovering massive pitfalls after they’ve purchased the property.
If you take out a home loan in Mississippi, you will likely be given a deed of trust, which is different from a mortgage. Typically if you have a mortgage and you fall behind on your monthly payments and your lender wants to foreclose on your home, the lender has to go to court to do so. A deed of trust is different and allows the lender to bypass the court system entirely. The lender hires a third party to auction the house it wants to foreclose and initiates a power of sale. While you’re probably not buying a home with the expectation that you’ll go into foreclosure down the road, it’s still a good idea to know where you stand if the unexpected were to happen.
30-Year Fixed Mortgage Rates in Mississippi
If you’re planning to buy in Mississippi, 30-year fixed-rate mortgages are a popular option. This dependable mortgage gives you a long time to pay off your home loan – 30 years – and the interest rate remains constant for the lifetime of the loan (unless you decide to refinance or make prepayments on the loan).
Another option is a 15-year fixed-rate mortgage. With this loan, you’ll pay off your debt faster and enjoy a lower interest rate but you can expect higher monthly payments. A less popular option is a 40-year loan. People often feel that it takes too long to pay off this loan and that you end up paying a lot in interest, but you can weigh which choice works best for you.
The average Mississippi rate for a fixed 30-year mortgage is 2.76% (Zillow, Jan. 2021).
Mississippi Jumbo Loan Rates
Because of the lower real estate prices in Mississippi, every county in the state has a standard conforming loan limit of $548,250. If you need to take out a bigger loan than this in order to pay for your home, you will have what is known as a jumbo loan.
Jumbo loans stand in contrast to conforming loans (those at $548,250 or below which qualify for normal interest rates and can be re-sold on the secondary mortgage market.) If you are considering a jumbo loan, you should know that they generally come with higher interest rates as they’re more of a risk to the lender. However, jumbo loan rates are currently lower than fixed-rates.
The average 30-year fixed jumbo loan rate in Mississippi is 2.65% (Zillow, Jan. 2021).
Mississippi ARM Loan Rates
If you do not plan to stay in your new home for a long time, an option that may appeal to you is an adjustable-rate mortgage (ARM). An ARM offers an introductory period of one, three, five, seven or 10 years, during which time the interest rate is lower than it would be with a fixed-rate mortgage. When that period ends, the interest rate can change once a year and usually it rises. There is a cap on how high the rate can reach though and that is laid out in the terms of the loan. Before deciding on an ARM, read the fine print and make sure you are able to pay the highest potential interest rate, in order to avoid any unpleasant surprises down the road. It's important to note that currently, ARM rates are higher than both fixed and jumbo rates.
The average rate for an ARM in Mississippi is 2.94% (Zillow, Jan. 2021).
Mississippi Mortgage Resources
Buying a home in the Magnolia State? If you need assistance, here are some of the options that can help you at any step of the process.
The Mississippi Development Authority has HOME programs to aid homebuyers. The Homebuyer Assistance Program helps eligible families with down payment and closing cost assistance. The Rehabilitation/Reconstruction Program is a competitive grant to help families reconstructing or making major repairs to their home to bring it up to code.
The Mississippi Home Corporation has programs geared toward first-time homebuyers and buyers in certain areas of the state. The Mortgage Credit Certificate Program cuts down on the amount of federal income tax the borrower has to pay, which frees up income for mortgage qualification.
The Smart Solution Program gives buyers funds to purchase their first home or upgrade. It offers competitive interest rates with a cash advance for down payment assistance.
|Resource||Problem or Issue||Who Qualifies|
|Mississippi Home Corporation||Loan products and tax deductions.||First-time homebuyers or persons who have not owned a principal interest in a residence in the past 3 years; Certain areas of the state, called “Target Areas”, are exempt from the “first-time homebuyer” rule. Maximum annual income of household members may not exceed certain income limits.|
|Mississippi Development Authority||Offers funding for down payment and closing cost assistance, plus home repair grants.||Homebuyers who meet income requirements.|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.|
The United States Department of Agriculture Rural Development program also offers loan help and mortgage grants throughout the entire country. The program aims to help develop more rural areas of a state while offering affordable housing for residents. Mississippi has grants and loans available for home repairs as well as loan assistance programs for those who qualify.
Mississippi Mortgage Taxes
Homeowners are allowed to deduct the mortgage interest they pay throughout the year from their taxable income when they file federal income taxes. Mississippi’s itemized deductions generally follow federal rules. This means that homeowners can double their deductions by including mortgage interest on state income taxes as well.
There are no transfer taxes on real estate transactions in Mississippi.
Mississippi Mortgage Refinance
If you’re hoping to refinance your home in Mississippi, check out the option from Fannie Mae. This came into existence in order to fill the void left by the expiration of the Home Affordable Refinance Program, or HARP. The program is called the High Loan-to-Value Refinance Option.
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset