Mississippi Mortgage Calculator

📍 How to Take Out a Mortgage in Mississippi

Mississippi stands out in 2025 with lower-than-average home prices, state-backed assistance programs, and lenders who understand local needs.

Ready to buy your first home? Need to refinance? Whatever your goal, it’s important to understand how mortgages work in this state.

We’ll compare loan types, break down property taxes and insurance costs, and highlight programs that can cut your expenses – either upfront or long term.

Keep reading to build a clear plan and move forward with a mortgage in Mississippi.

📝 TL;DR – Mississippi Mortgage Checklist

🏡 Overview of the Mississippi Housing Market (2025)

Mississippi remains one of the most affordable places to buy a home in 2025.

According to the U.S. Census Bureau, the median home value in the state is significantly lower than the national average.

Many counties offer homes for under $200,000, particularly in smaller towns and rural areas.

While home prices in many parts of the U.S. have shifted due to inflation and interest rate hikes, Mississippi’s real estate market has stayed relatively stable.

Suburban and rural areas continue to attract steady demand and offer more budget-friendly options for both first-time and repeat buyers.

In DeSoto, Rankin, and Lafayette counties, local job growth and new developments have led to a moderate uptick in buyer competition.

That said, buyers across much of Mississippi still enjoy more negotiating power than in high-demand metro markets.

As of early 2025, 30-year fixed mortgage rates in Mississippi are ranging between 6.8% and 7.2%, depending on lender and credit profile.

These trends are consistent with national data from Zillow and Bankrate.

Although higher than pandemic-era lows, current rates still make homeownership accessible, especially when paired with Mississippi’s down payment and closing cost assistance programs.

📃 State-Specific Laws & Mortgage Insights in Mississippi

When taking out a mortgage in Mississippi, it’s important to understand the state’s real estate laws and mortgage regulations.

These policies affect how property transactions are handled and what rights you have as a buyer or homeowner.

🔎 Seller Disclosure Requirements

Mississippi requires sellers to disclose any known material defects in the property, including issues with the structure, plumbing, HVAC, or title. However, sellers are not required to actively inspect the home for problems.

Tip: Always schedule a professional home inspection before closing. Seller disclosure laws help, but they don’t replace due diligence.

📜 Deed of Trust (Non-Judicial Foreclosure)

Mississippi uses a deed of trust system rather than a traditional mortgage. This means that if a borrower defaults, lenders can initiate a non-judicial foreclosure process – selling the home without going through court. This typically results in a faster foreclosure timeline compared to judicial states.

🚫 No Real Estate Transfer Tax

Mississippi is one of the few states that does not charge a transfer tax when property ownership changes hands. This can help reduce your total closing costs by several hundred dollars compared to other states.

📌 Title Insurance and Recording Fees

While there’s no transfer tax, buyers should still budget for title insurance and county recording fees, which vary by location. These costs protect your ownership rights and ensure the property deed is officially recorded.

💸 Loan Types Available in Mississippi

Mississippi homebuyers in 2025 can choose from a range of mortgage options tailored to different income levels, credit histories, and property types. With all these options available, there’s likely a loan program that fits your needs and goals.

🏠 Conventional Loans

• Requires a minimum credit score of 620.
• Usually paired with a 20% down payment to avoid private mortgage insurance (PMI).
• Offers competitive rates for borrowers with strong financial profiles.
• Flexible terms: commonly 15, 20, or 30 years.

🔑 FHA Loans

• Designed for buyers with lower credit scores or smaller savings.
• Only 3.5% down payment required with a credit score of 580 or higher.
• Credit scores between 500–579 require 10% down.
• Backed by the Federal Housing Administration.

🎖️ VA Loans

• Available to veterans, active-duty military, and surviving spouses.
• Zero down payment required.
• No monthly mortgage insurance (PMI).
• Backed by the U.S. Department of Veterans Affairs.

🌾 USDA Loans

• For low-to-moderate income buyers purchasing in eligible rural areas.
• Requires no down payment.
• Backed by the U.S. Department of Agriculture.
• Must meet household income and location eligibility.

🏡 Jumbo Loans

• Used for homes priced above conforming loan limits (usually $766,550).
• Requires excellent credit (typically 700+).
• Often requires larger down payments and cash reserves.
• May have slightly higher interest rates than conventional loans.

🔄 Refinance Options

• Rate-term refinance: Replace your current mortgage with one at a lower interest rate or shorter term.
• Cash-out refinance: Tap into home equity to access funds for renovations, debt, or large expenses.
• Streamline refinance: Faster, less paperwork-heavy options available for current FHA or VA loan holders.

📑 Requirements to Qualify for a Mortgage in Mississippi

Before applying for a home loan in Mississippi, it’s important to know what lenders typically look for. These requirements can vary slightly depending on the loan type, but most follow similar baseline rules.

Here’s a quick overview of what you’ll need to get approved in 2025:

Meeting these requirements doesn’t guarantee approval, but it helps position you for better terms and smoother underwriting. If you fall slightly outside of these ranges, alternative programs like FHA or USDA loans may still be available.

🧾 Property Taxes and Insurance in Mississippi

Property taxes and homeowners insurance are important costs that directly impact your monthly mortgage payment in Mississippi. These costs are often escrowed (meaning they’re bundled into your mortgage bill), so it’s important to estimate them accurately.

🏛️ Property Taxes

Mississippi has some of the lowest property tax rates in the U.S. The statewide average is about 0.65%, but this varies by county.

For example, property taxes in Washington County can exceed 0.9%, while Claiborne County remains under 0.35%.

You can view our full county-by-county property tax breakdown to compare rates across Mississippi.

🏡 Homeowners Insurance

The average annual premium for homeowners insurance in Mississippi is around $1,600 to $2,100, depending on location, home value, and coverage level.

Coastal counties like Harrison or Jackson often face higher premiums due to increased storm and flood risk.

Insurance rates can vary widely, so it’s a smart move to compare quotes from several providers before selecting a policy.

📦 What is Escrow?

Most lenders require you to escrow property taxes and homeowners insurance, especially for first-time homebuyers or low-down-payment loans.

This means your monthly mortgage payment includes 1/12 of your estimated annual property tax and insurance costs.

When your bills come due, your lender pays them directly from your escrow account. This setup helps avoid large lump-sum payments and keeps your mortgage predictable each month.

📊 County-by-County Property Tax Snapshot

Mississippi offers low property taxes compared to national averages, but rates vary by county. Use this interactive table to compare local tax burdens and get a sense of affordability across regions. You can click the column headers to sort by county name, average tax rate, or median home value, helping you quickly identify the most (or least) expensive areas in Mississippi to own a home.

Source: U.S. Census American Community Survey 2022. Property tax is typically escrowed into your monthly mortgage payment.

📈 Mississippi Mortgage Rate History

🎯 First-Time Homebuyer & Assistance Programs

Mississippi offers a variety of homebuyer assistance programs in 2025, especially for first-time buyers, educators, veterans, and rural residents. These programs can help reduce upfront costs, lower your monthly payment, or provide valuable tax benefits.

💸 Smart6

The Smart6 program from the Mississippi Home Corporation provides up to $6,000 in down payment and closing cost assistance. This comes in the form of a second, deferred-payment loan at 0% interest.

Who qualifies: First-time and repeat buyers under the $122,000 income limit. No repayment until the home is sold, refinanced, or the mortgage ends.

How to apply: Work with an approved Mississippi lender and apply through the Mississippi Home Corporation.

🎁 Easy8

Easy8 offers up to $8,000 in assistance, but is only available to first-time homebuyers. This loan is also deferred at 0% interest, and income limits are slightly lower than Smart6.

Who qualifies: First-time buyers only, meeting area income and purchase price limits.

How to apply: Apply via a lender who participates in the Mississippi Home Corporation’s Easy8 program.

💰 Trusty10

The Trusty10 program provides up to $10,000 in down payment assistance – but unlike Smart6 and Easy8, it carries a 2% interest rate and is repayable over 15 years.

Who qualifies: Buyers meeting income and price limits (same as Easy8). This option is ideal for those needing more help upfront and willing to make small monthly payments.

How to apply: Apply through participating lenders in the Mississippi Home Corporation network.

🎓 Teacher and Veteran Assistance

Mississippi supports homeownership for public school teachers and veterans. Eligible teachers may receive up to $6,000 in grant funding that doesn’t require repayment, while qualified veterans may access VA-backed loans with zero down payment.

Who qualifies: Full-time public educators in shortage areas and veterans with valid military service.

How to apply: Teachers must apply through state-approved housing initiatives. Veterans should apply through VA-approved mortgage lenders.

🏡 USDA Rural Development Loans

USDA loans help moderate-income buyers purchase homes in eligible rural Mississippi counties. These loans offer 0% down payment, flexible credit requirements, and reduced interest rates.

Who qualifies: Buyers who meet income limits and plan to occupy a home in a USDA-approved area.

How to apply: Find an approved USDA lender or visit the USDA eligibility map to get started.

📜 Mortgage Credit Certificate (MCC)

The MCC offers a federal income tax credit worth up to $2,000 per year. It reduces the amount of federal income tax you owe – freeing up more income to qualify for a loan or improve affordability.

Who qualifies: Most first-time buyers meeting income and purchase limits. Some targeted areas waive the first-time requirement.

How to apply: Apply for an MCC through an MCC-participating lender. You must apply before closing.

How to Compare Loan Offers & Lenders in Mississippi

Comparing loan offers is one of the most important steps when getting a mortgage.

Different lenders may offer slightly different interest rates, closing costs, or underwriting conditions – even for the same borrower.

Request Loan Estimates from at least 3–5 lenders to see how their terms stack up.

Here’s a simple email template you can use when requesting a Loan Estimate:

Subject: Request for Loan Estimate – Mississippi Home Purchase

Hello [Lender Name],

I’m in the process of shopping for a mortgage loan for a home purchase in Mississippi and would like to request a Loan Estimate based on the following details:

• Home Price: $250,000
• Estimated Down Payment: $20,000
• Loan Term: 30 years fixed
• Credit Score: ~700

Please let me know if you need any additional information. I’m hoping to compare offers this week and would appreciate your help.

Best regards,
[Your Full Name]
[Your Email & Phone Number]

Most lenders respond within 1–2 business days. If you’re using state assistance programs (like Smart6 or Easy8), confirm that the lender participates.

🔁 Refinancing Options in Mississippi

Refinancing is another way Mississippi homeowners can take out a new mortgage – not to buy, but to improve their current loan.

Whether you’re hoping to lower your interest rate, shorten your term, or tap into equity for renovations or debt consolidation, refinancing replaces your old mortgage with a new one.

In Mississippi, refinance options include rate-and-term refinancing to reduce your payment, cash-out refinancing to borrow against home equity, and streamline programs for existing FHA, VA, or USDA borrowers.

If your original mortgage came with a high interest rate, refinancing could help you save significantly in the long run, especially if your credit score has improved or rates have dropped.

Just like with a purchase, you’ll want to compare offers, review closing costs, and confirm if you’ll need a new appraisal.

Use our mortgage calculator to estimate whether a refinance makes sense for you, and always speak with a local lender to understand your specific options in Mississippi.

Final Thoughts

Taking out a mortgage in Mississippi is a big step, but with the right knowledge, tools, and guidance, it doesn’t have to be overwhelming. From low property taxes to helpful first-time buyer programs, the state offers a lot of value to both new and experienced homeowners.

Whether you’re just starting to explore loan types or you’re ready to buy your dream home, it’s important to borrow smart and plan ahead.

Start by using our Mississippi Mortgage Calculator to estimate your monthly payment and see how taxes, insurance, and PMI affect your budget.

From there, you can:

• ✅ Get pre-approved with a trusted lender in Mississippi
• ✅ Compare Loan Estimates from 3–5 lenders
• ✅ Explore down payment assistance programs like Smart6 or Easy8
• ✅ Work with a local real estate agent to find the right home

Every mortgage journey is unique, but you don’t have to handle it alone. Bookmark this guide, revisit the sections that matter most, and take the next step toward owning a home in Mississippi.