Compare Current Mortgage Rates in Mississippi

If you’re a first-time homebuyer looking for a property in Mississippi, interest rates will play a large part in the total cost of your home. In addition, the National Association of REALTORS® (NAR) found that the monthly mortgage payment in most counties in Mississippi went up since last year. 

If you’re considering buying in the Magnolia State, here’s what you should know about getting the best rate on your mortgage and what first-time homebuyer assistance programs are available in Mississippi.

No matter where in the country you get a mortgage, external factors like these will shape your borrowing costs: 

• Inflation: The Federal Reserve tries to keep inflation at a consistent 2% per year. It uses monetary policy to influence interest rates, trying to push them up when inflation is high and nudge them down when inflation is low.
• The unemployment rate: If unemployment is high, the Fed will try to decrease interest rates. If unemployment is low, it tries to increase them. The Fed guides rates by setting the federal funds rate, which affects interest rates on all kinds of loans, including mortgages.
• National and global events: Economic booms and busts, global political events, and natural disasters can influence investors’ appetite for risk and affect the return they expect to earn from buying mortgage-backed securities.
• 10-year U.S. Treasury yields: Treasury bonds offer a nearly risk-free rate of return. Mortgage investors want to earn more than this rate, so mortgage rates tend to be one to two percentage points higher.

Mortgage rates ebb and flow as these dynamic forces shift. Rates change daily or even several times a day.

Learn more: What is a mortgage?

While rate differences from state to state tend to be small, it can be helpful to understand how local factors can affect your rate:

• Operating costs: Office rent, worker wages, insurance, and regulatory costs vary by state and across lenders.
• Unemployment and foreclosure rates: Lenders might charge higher rates in areas that are less stable economically because they’re taking on a greater risk.
• Lender risk appetite and competition: Each lender has its own risk tolerance and business strategy. To direct borrowers to certain loan products, lenders can decrease or increase rates.
• Underserved areas: Lenders may offer special programs with lower rates in communities that have been federally designated as low-income, minority, or disaster-impacted.

Several programs administered by the Mississippi Home Corporation (MHC) can give first-time homebuyers a boost in the form of down payment assistance, closing cost assistance, or federal income tax savings:

• MHC Mortgage Credit Certificate (MCC): The MCC can get you a federal tax credit of up to 40% of your mortgage interest year with a $2,000 cap. Income and home cost limits vary by county.
• MHC Smart6: MHC’s Smart6 Program, available through participating lenders, offers a 30-year, fixed-rate first mortgage and a 0%, $6,000 second mortgage for down payment and closing cost assistance. This program can be combined with the mortgage credit certificate program, and you must repay the $6,000 mortgage when you sell, refinance, or pay off your first mortgage. You don’t have to be a first-time buyer, but your household income can’t exceed $122,000. 
• MHC Easy8: MHC offers this down payment assistance program to first-time homebuyers and repeat buyers in targeted areas. Easy8 is a zero-interest loan of $8,000 that can be used for a down payment or closing costs. The loan must be paid back when you sell, refinance, or pay off your mortgage. You must live in the home as your primary residence and complete a homebuyer education course. 
• MHC Trusty10: If you need a little more money for your down payment and closing costs, MHC offers Trusty10. This is a 15-year, $10,000 second mortgage with a 2% interest rate. You must use the home as your primary residence and complete a homebuyer education course. 
• MHC Housing Assistance for Teachers (HAT): This program offers down payment and closing cost grants to incentivize teachers to move to and work in areas with a critical shortage of qualified teachers. You must teach in the district for at least three years. The program offers up to $6,000 in closing cost assistance, as long as the teacher makes a down payment of at least 1%. HAT can be combined with MHC Smart6 and the mortgage credit certificate program.
• City of Jackson HOME Program Down Payment Assistance: Jackson funds nonprofits to help people whose income is no more than 80% of the area's median income buy homes within city limits. The maximum home price through the program is $156,000. Applicants must complete an eight-hour homebuyer education course and meet program requirements. The assistance is gradually forgiven over five or 10 years.

These tips can help you get lower mortgage rates in Mississippi or any other state:

• Improve your credit score: Keep your credit utilization low and make consistent, on-time payments. A score of 760 or higher can unlock lenders’ best mortgage rates.
• Comparison shop: Getting quotes from multiple lenders could substantially reduce your rate — from 7.0% to 6.5%, for example — according to a 2023 Consumer Financial Protection Bureau study examining mortgage data from 2021.
• Increase your income: Lenders love to see stable, long-term income when reviewing a mortgage application. Consider asking for a raise at work or applying for similar positions with better pay at other employers. Short-term or unpredictable income may not count in lenders’ debt-to-income calculations, but you can try picking up a side gig to save more for your down payment.
• Consider a shorter term: A 15-year mortgage can have a significantly lower interest rate than a 30-year mortgage. It may be a good choice if you can afford the higher monthly payments required to pay off your principal in half the time.

With all the different mortgage types available, you can compare features to find the best one for your situation. Here are the most common options you’ll encounter:

Traditional Mortgages:

Conventional

• The most popular loan, backed by banks and financial institutions
• 620 minimum credit score
• 3% minimum down payment

Jumbo

• For large loans above conforming limits
• 680 minimum credit score (varies by lender)
• 10% minimum down payment

Government-backed Mortgages:

VA

• For qualifying military service members, veterans, and surviving spouses
• No minimum credit score per VA rules (varies by lender)
• 0% minimum down payment

USDA

• For low- to moderate-income homebuyers in rural areas
• No minimum credit score
• 0% minimum down payment

FHA

• For borrowers with lower credit scores
• The minimum credit score could be as low as 500
• 10% downpayment if your credit score is 500; 3.5% downpayment for scores about 580