Mississippi Mortgage and Refinance Rates

Current mortgage rates in Mississippi

As of Tuesday, November 5, 2024, current mortgage interest rates in Mississippi are 7.00% for a 30-year fixed mortgage and 6.39% for a 15-year fixed mortgage.

While Mississippi mortgage rates have been dropping, home prices in the state have been moving in the opposite direction. The median home sales price in Mississippi rose by more than 6 percent compared to the year prior and hit more than $275,000 in June of 2024, according to ATTOM.

Mississippi mortgage refinancing

Refinance rates are up from the sub-3 percent range of early 2021, but they have dropped since reaching 8 percent in late 2023. If you got a mortgage in Mississippi toward the end of last year, refinancing might look appealing to save money on your monthly payments.

If you’ve owned your home in Mississippi for a long time, you may be sitting on a sizable chunk of equity now. With a cash-out refinance, you can leverage your home equity to pursue other financial goals, such as paying for a home remodeling project or consolidating debt.

Mississippi mortgage rate trends

Rates for purchase loans and refinances nationwide and in Mississippi began a downward trend in mid-July. While the Fed began cutting rates at its September meeting, it's unclear how low rates could go — and how fast they could drop — through the end of the year. Lower mortgage rates could spur more homebuying activity in Mississippi, particularly from those who were sidelined when rates were in the 7 to 8 percent range. 

National mortgage rates by loan type

As you rate shop with different lenders, compare their offers to the national averages for various loan types.

Mortgage statistics for Mississippi

Mississippi has one of the highest homeownership rates in the country. As you begin your house-hunting journey in Mississippi, here are some other helpful data points to inform your search:

• Median sales price, June 2024: $275,581
• Median down payment, June 2024: $3,623
• Most popular cities: Jackson, Gulfport, Brandon, Hattiesburg
• Homeownership rate, Q4 2023: 75.5%

Data sources: ATTOM, U.S. Census Bureau

Mortgage options in Mississippi

If you’re looking to get a mortgage in Mississippi, consider these loan options:

• Mississippi conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay for private mortgage insurance (PMI), as well.
• Mississippi FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5 percent down payment, or a score as low as 500 with 10 percent down. As with a conventional loan, if you put down less than 20 percent on an FHA loan, you’ll be on the hook for mortgage insurance.
• Mississippi VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee.
• Mississippi USDA loans: If you can qualify as a low- or moderate-income buyer and you’re planning to live in an eligible rural area of Mississippi, you might consider a USDA loan. This loan type also does not require a down payment.

First-time homebuyer programs in Mississippi

If saving enough money for a down payment is holding you back from first-time homeownership, or your credit history is less than ideal, the Mississippi Home Corporation might have a program that can help. The agency offers programs that provide cash for closing costs or a down payment, as well as programs that reduce your federal tax liability as a homeowner.

Smart6

Mississippi Home Corporation’s Smart6 loan is a 30-year fixed-rate mortgage for eligible first-time and repeat homebuyers. The “6” refers to the accompanying $6,000 in down payment and closing cost assistance, which is set up as a second, deferred-payment mortgage with no interest. Among the eligibility requirements, your household income can’t exceed $122,000 unless you’re using it with the mortgage credit certificate.

Easy8

Similar to the Smart6 program but only available to first-time buyers, Easy8 offers up to $8,000 of assistance with down payment and closing cost expenses. Income limits are lower than the Smart6 program and vary by county and household size. The property's price cannot exceed $332,000 in targeted areas or $275,000 in non-targeted areas.

Trusty10

The Trusty10 program offers the highest amount of down payment and closing cost assistance — up to $10,000 — but it’s not a zero percent interest loan. Instead, you’ll pay a 2 percent rate for 15 years, and you’ll need to meet income and purchase price limits, which are the same as those in the Easy8 program.

Housing Assistance for Teachers

Mississippi has a critical shortage of public educators. Teachers looking to buy and work in select counties in the state may be able to qualify for up to $6,000 of grant money that does not have to be repaid as long as they remain employed for at least three years.

Mortgage credit certificate

Mississippi offers a mortgage credit certificate (MCC) that reduces federal income tax you’ll pay each year. With the MCC, you can take a federal tax credit equal to 40 percent of the annual interest on your mortgage, up to $2,000 a year. In addition, the remaining 60 percent of mortgage interest paid annually still qualifies as an itemized tax deduction.

There are both annual household income and purchase price limits associated with this program, but the credit is available to all homebuyers.

How to find the best mortgage rate in Mississippi for you

Rather than going right to your bank for a mortgage, compare loan offers from a few different lenders. This could help you uncover a lower rate, potentially saving you thousands in interest over time. Bankrate can also help you find the best mortgage deal in today’s volatile rate environment. As you shop around, keep these tips in mind:

Mississippi mortgage resources

• Mississippi first-time homebuyer assistance programs
• Review Mississippi mortgage lenders
• Best homeowners insurance in Mississippi

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards