Mortgage Rates in Mississippi
Compare today's average mortgage rates in the state of Mississippi. Bankrate aggregates mortgage rates from multiple sources to provide averages for Mississippi.
Mississippi mortgage overview
Homeownership in Mississippi is relatively more affordable than in other areas of the country, with a median monthly cost of $1,134, according to Census data. Every county in the state has a standard conforming loan limit of $510,400 and a standard FHA loan limit of $331,760.
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 less than ideal, the Mississippi Home Corporation may 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.
Smart Solution Mortgage
Mississippi’s Smart Solution Mortgage is a competitive, 30-year home loan with 3.5 percent down payment assistance, as well as lower mortgage insurance premiums, for both first-time homebuyers and current homeowners. The down payment assistance is made available as a 10-year second mortgage.
There are several program requirements to be eligible for the program, including that the home being purchased serve as your primary residence and that your annual household income not be more than $95,000. Additional requirements include being a U.S. resident and having a minimum credit score of 640.
Mortgage Revenue Bonds (MRB7)
Another option from the Mississippi Home Corporation, the Mortgage Revenue Bonds or MRB7 program is open to first-time homebuyers or those who have not owned a home for three years, as well as any buyer purchasing in a targeted area and veterans.
The program includes a 30-year, fixed-rate home loan, along with $7,000 for a down payment provided in the form of a 10-year, zero-percent interest second mortgage that’s forgiven after 10 years.
There are purchase price limits with the MRB7 program, as well credit score requirements depending on the loan type. There are also household income limits based on the county where the home is located.
Mortgage Credit Certificate
Similar to many other states across the country, Mississippi offers a Mortgage Credit Certificate (MCC) that reduces federal income tax borrowers must pay each year. Applicants can take a federal tax credit equal to 40 percent of the annual interest on the loan, up to $2,000 a year. In addition, the remaining 60 percent of mortgage interest paid annually still qualifies as an itemized tax deduction on federal income taxes.
There are both annual household income and purchase price limits associated with this program, but the credit is available to all homebuyers.
Mississippi mortgage refinancing
There can be many benefits to refinancing your mortgage, including lowering your interest rate and monthly mortgage payments, so be sure to shop around, do your research and find the best deal possible.
The Mississippi Home Corporation does not offer programs specifically for refinancing, but there are plenty of private lenders in the state that can assist you. Remember that you’re not required to work with the same lender who provided your original loan. No matter who you choose to work with, you’ll want to be sure that the costs of obtaining a new mortgage are not steeper than any savings you may realize by refinancing.