Mortgage Rates Mississippi: Check Rates From All Major Lenders
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If you're interested in purchasing a property in Missouri, you're not alone. The housing market has been red-hot since last year, especially in the coastal communities. According to local real estate experts, buyers are attracted by the low interest rates and cheap property taxes.
While it's understandable to feel anxious about competing with other buyers in the state, don't fret. In this complete guide, we’ll give you all the tools you need to buy the property of your dreams!
Loan Terms
When taking out a home loan, you'll be asked to choose between a fixed-rate or an adjustable-rate mortgage. Your decision will affect the mortgage rate and the repayment schedule. Here's a quick overview of each:
Fixed-Rate Mortgage
Fixed-rate mortgages come with a set interest rate. As such, your monthly payment amount will remain consistent throughout the life of the loan. Usually, you can choose from a 10, 15, 20, or 30-year fixed mortgage.
Since the interest rate remains the same, your monthly payment will be consistent for years to come. That will make it easier for you to include your mortgage in your monthly budget. Keep in mind, however, these loan terms come with higher mortgage rates.
Adjustable-Rate Mortgage
Adjustable-rate mortgages (ARMs) come with a fixed interest period. During this time, you are charged an ARM rate that's lower compared to what you get from a fixed-rate mortgage.
After the fixed-interest period ends, the rates are adjusted based on market trends. For example, if you get a 5/1 ARM, the rate is fixed for the first five years but will be adjusted annually thereafter.
Mortgage Refinancing
Refinancing a mortgage refers to paying off your current home loan and replacing it with a new one. Some of the reasons for this include:
- Shortening the repayment period
- Lowering the mortgage interest rate
- Converting from an adjustable-rate mortgage to a fixed-rate mortgage
Today's Mortgage Rates In Mississippi
When deciding on the type of mortgage or the repayment terms, you need to check the mortgage rate trends. This will help you decide which loan offers you the best value for your money.
Check the table below to see the mortgage and refinance rates in Mississippi. We update the data daily, so visit this page regularly for the latest numbers.
Mississippi Mortgage Rates
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If you want personalized Mississippi mortgage rates, use the mortgage calculator at the top of this page. Just enter your personal and financial information and the system will automatically generate today's mortgage rates.
Homebuyer Assistance Programs In Mississippi
The Mississippi Home Corporation (MHC) was formed in 1989 to boost homeownership in the state. If you need help securing a mortgage, you may take advantage of the following MHC loan programs:
- Smart Solution: This gives low- to moderate-income homebuyers the opportunity to take out a 30-year fixed mortgage at a low interest rate. The program also comes with a down payment assistance option of 3.5% of the home price.
- MRB7: This 30-year fixed mortgage comes with a competitive mortgage rate as well as a $7,000 DP assistance option.
- Housing Assistance for Teachers: This program gives certified public school teachers in select areas of the state a $6,000 grant to help them finance their homes.
Buying A House In Mississippi
Buying a house can be stressful, especially if you're interested in a highly competitive housing market like Mississippi. Check the steps below to see how it works:
Step 1: Review Your Financial Situation
Taking out a mortgage is a long-term financial commitment. To ensure that your ready, you need to check the following:
- Credit score: Most lenders require that you have a score of at least 620.
- Debt-to-income ratio: Lenders will want to see that you will only spend 36% of your income on debt (including your future mortgage payments).
- Money for your down payment: The majority of conventional loans require a DP of at least 20%. If you do not have this money on hand, look for a loan program in the state that may help.
- Cash for closing fees: You need to prepare 2-5% of the home price before you can close your mortgage deal.
Step 2: Look For Lenders
The next step is looking for lenders in the state. You can use our mortgage tools to easily compare rates from various lenders.
Aside from rates, check the lender fees, as well. Some lenders offer low interest rates but charge high fees.
Step 3: Get Preapproved For A Mortgage
Once you've chosen a lender, send them your financial information. They'll respond with a preapproval letter if they find that you're a creditworthy borrower.
Getting a preapproval letter shows sellers that you're serious about purchasing a property and that you can pay for it in the future.
Step 4: Start House Hunting
Now, the fun part begins! You can go house hunting on your own or you can hire a real estate agent to help you look for a home in the state.
After you find the ideal home, make an offer. Your real estate agent should provide you with helpful advice on what you should offer to outbid other buyers.
Step 5: Apply For A Mortgage
If your offer is accepted, congratulations! The next step is applying for a mortgage. You can reach out to the same lender that gave you the preapproval letter or you can move forward with other lenders.
Check the interest rates again to see if anything has changed. The data will show you if another lender is now willing to offer you a better rate for your loan.
Step 6: Inspections And Appraisals
To make sure that the house you're buying is in good condition, it's advisable to hire an inspector. They'll check various parts of the property to ensure that there are no significant repairs needed. If something comes up during inspection, you can renegotiate with the seller.
Step 7: Seal The Deal
After your mortgage is approved and you've paid all the associated fees, it's time to close the deal.
This will usually involve signing a lot of documents. If you have any questions, you can ask your real estate agent. In Mississippi, it's also required that you have a real estate attorney to look over the documents.
Once everything is cleared to go, you will receive your keys to your new home!
How To Get Better Mortgage Rates In Mississippi
The interest rate is the percentage applied to the mortgage balance. If you want to save money on your loan, you can try various ways to lower these rates. Here are some of your options:
Buy Discount Points
One of the most common ways to lower mortgage rates is by buying discount points (or mortgage points). Points cost 1% of the total loan amount. So, if you have a $200,000 loan, you pay $2,000 for 1 point. This will typically reduce the interest rate by 0.125%
Although you will pay more upfront by buying points, it may help you save money later on, especially if your mortgage has longer terms (like a 30-year fixed-rate loan).
Boost Your Credit Score
Before applying for a loan, you should try to boost your credit score. Not only does this help you qualify for a wider variety of mortgages, but it also allows you to get lower interest rates. That's because lenders view borrowers with good credit scores as low risk.
Here are some ways to improve your credit score:
- Pay your credit cards in full.
- Pay your student loans.
- Pay all your bills on time.
- Limit your requests for new credit.
- Avoid closing bank accounts.
Choose Shorter Loan Terms
Shorter-term loans come with lower interest rates because they pose fewer risks to lenders. For example, you can choose a 20-year loan instead of a 30-year one.
Closing Thoughts
Buying a home is one of the biggest investments you'll ever make. By making use of the mortgage resources available on this page, you can secure an affordable loan and save money on your next house.
For more information on Mississippi mortgage rates, get in touch with Wesley LLC. We'll educate you on your options so you can get the best deal on your new property!