Mississippi Mortgage and Refinance Rates

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Point of Interest

Are you looking to buy or refinance a home in Mississippi? Mortgage and refinance rates in this state recently dropped to new lows, so it could be the perfect time to buy or refinance a home.

 

Mortgage rates in Mississippi tend to fluctuate — sometimes they’re higher than the national average and sometimes they’re lower. The one thing that never changes, though, is the affordability of the housing market. The median home price in Mississippi is nearly $100,000 lower than the national average of $204,900. Property taxes and closing costs also tend to be lower in Mississippi than in other states, making it a very affordable place to buy a home. 

Getting a mortgage in Mississippi 

Mississippi has the lowest cost of living in the country and very inexpensive housing costs. The median home price is just $114,500, which is $90,400 cheaper than the national average. Mississippi also has low property taxes and closing costs, which makes it easier for people with minimal savings and tight budgets to afford a home. Plus, if you need outside assistance to be able to pay for your closing costs or make a down payment, there are several programs that can help you.

  1. Median home price: $114,500
  2. Average 30-year fixed-rate: 3.96%
  3. Median monthly mortgage cost: $1,134
  4. Homeownership rate: 68.2%

Mississippi state mortgage rate trends 

Historically, mortgage rates in Mississippi have bounced around — sometimes they’ve been a few basis points higher than the national average and sometimes they’ve been lower. However, they’ve followed the same downward trajectory as national mortgage rates. In 1986, they fell below double digits and have been trending downward ever since, reaching new lows during the pandemic.

Mississippi state current mortgage rates

Although the coronavirus has brought mortgage rates in Mississippi to new lows, they’re still slightly higher than the national average. The average current rate for a 30-year fixed mortgage is 3.96%, which is higher than the national average of 3.51%.

With that being said, mortgage and refinance rates are much lower now than they were a year ago, so it’s still a good time to purchase a home. In May of 2019, mortgage rates in Mississippi were above 4%. Taking out a mortgage now could save you thousands of dollars in interest if mortgage rates start to climb back up.

Most and least expensive places to live in Mississippi 

Mississippi has some of the lowest home prices in the country — even properties located near major cities like Jackson are much more affordable than houses in other parts of the country. Rankin County, for example, is just 20 minutes away from Jackson and has a median home price of $160,000 — nearly $50,000 less than the national average. If you have a limited budget but want to live close to a major metro area, buying a home in Mississippi may be the right move.

5 most expensive

  1. Madison County is a family-friendly suburb of Jackson and has a median household income of $71,690 and an average home value of $215,100.
  2. DeSoto County is a suburb of Memphis, Tennessee, with excellent schools and pricier homes. The median home value in the area is $162,000, which is $47,500 more than the state average.
  3. Rankin County is located about 20 minutes away from Jackson and is close to shops, restaurants and entertainment. Homes in the area cost $160,000 on average.
  4. Harrison County is located right on the Gulf Coast and is just an hour drive from Mobile, Alabama. Homes in this county go for around $145,000.
  5. Hancock County is also located on the Gulf Coast. It has beautiful sandy beaches and is about an hour away from New Orleans. Buyers can expect to pay $145,000 for a home in Hancock County.

5 least expensive

  1. Noxubee County is located about an hour away from Meridian. The county has very affordable housing prices — homes cost just $60,800 on average.
  2. Tallahatchie County is located less than two hours away from Memphis. The average home price in this small county is just $63,500.
  3. Chickasaw County is 45 minutes away from Tupelo, the birthplace of Elvis Presley. The area has very affordable housing costs — monthly mortgage payments cost about $917.
  4. Calhoun County is located a little over an hour away from Birmingham, so it’s a great place to live if you work in Alabama. The average home in the county costs $67,700.
  5. Benton County is under an hour and a half away from Memphis, so it’s close to lots of shops, restaurants and nightlife. Homes in the area go for around $70,000.

Mississippi state mortgage resources and intricacies 

Mississippi has some of the most affordable oceanside property in the country, but one downside of living so close to the coast is that you’ll probably need to pay more for homeowner’s insurance. If you decide to live in a county near the water like Hancock or Harrison, you’ll need to purchase extra wind and flood coverage so you’re protected in case of a major storm.

Mississippi is also one of the 19 states with a hurricane deductible. If your home gets damaged in a hurricane, your reimbursement will be reduced by a small percentage of your home’s insurance value.

If you’re willing to take the risk of living in a hurricane-prone state, Mississippi is a great place to settle down. The state has low closing costs, property taxes and housing prices, which makes it easier to afford a home. There are also programs that can provide you with closing costs and down payment assistance if you need it.

The Mississippi Home Corporation has a loan program called Smart Solution that offers low interest loans and down payment assistance of up to 3.5% in the form of a second mortgage. There’s also a grant program for teachers that provides up to $6,000 in closing cost assistance if they agree to work in an underserved school district for at least three years. 

If you’re a first-time homebuyer or haven’t owned a home in three or more years, you may also qualify for a program called the Mortgage Credit Certificate. It gives you a tax credit for a percentage of the mortgage interest that you’ve paid, up to $2,000 per year.

The final word

Mississippi has the lowest cost of living in the country and very affordable homes. Interest rates in Mississippi are also at a record low, so if you’re on a budget and looking to save on mortgage costs, now is a great time to buy a home.