| City | Average Home Value | Loan Term | Current Rate | Downpayment (20%) | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|---|---|
| Jackson | $57,000 | 30-year fixed | 0% | $11,400 | $0.00 | -$45,600.00 |
| Hattiesburg | $149,600 | 30-year fixed | 5.989% | $29,920 | $716.70 | $138,332.00 |
| Biloxi | $140,500 | 30-year fixed | 5.989% | $28,100 | $673.10 | $129,916.00 |
| Tupelo | $134,200 | 30-year fixed | 5.989% | $26,840 | $642.92 | $124,091.20 |
Getting ready to buy a home in the Magnolia State?
Prepare yourself and commit to your mortgage loan with confidence. Review Benzinga's list of the best mortgage companies and rates in Mississippi before you even apply.
Best Mortgage Lenders in Mississippi
- Best Overall: Rocket Mortgage® by Quicken Loans®
- Best for Veterans: Veterans United
- Best for First Time Home Buyers: Wells Fargo
- Best for Online Lender: Better.com
What is a Mortgage Rate?
The mortgage rate usually refers to the interest rate on your mortgage loan. When you borrow money in a mortgage loan, you’ll pay it back over a period of 5 to 30 years, depending on your term.
Each month, you’ll make a payment to your mortgage lender that includes 2 parts — your principal and your accrued interest. The principal portion of your payment goes toward reducing the total amount of money that you owe and your interest payment goes to your lender in exchange for servicing your loan. Shopping for the lowest mortgage rate can save you thousands of dollars by the time you pay off your loan.
When you compare mortgage rates between lenders, you’ll usually see 2 rates listed — an interest rate and an annual percentage rate (APR). Your interest rate is the base percentage you’ll pay to your lender and your APR is your interest rate plus any fees your lender charges. Always compare mortgage rates by APR because this is the effective rate you’ll actually pay.
5 Best Mortgage Lenders in Mississippi
Let’s take a look at some of the best mortgage lenders that offer affordable mortgage rates in Mississippi.
- Online Mortgages
1. Best Overall: Rocket Mortgage® by Quicken Loans®
Rocket Mortgage® by Quicken Loans® is a simple and intuitive mortgage application platform. You can apply for a loan in as little as 15 minutes, and the application is simple enough to complete on your phone.
Most buyers receive an instant decision, and you can browse rates and loan options online. Quicken Loans also offers a full selection of government-backed mortgage loans for first-time buyers, including FHA, VA and USDA loans.
Quicken Loans is one of the best lenders for first-time buyers and previous homeowners alike with a simple application and plenty of loan options.
- Current Service Members
2. Best for Veterans: Veterans United
VA loans are a special type of government-backed mortgage loan that allows service members and veterans to buy a home with $0 down. Veterans United is the country’s top provider of VA loans — the lender also offers conventional mortgage loans as well.
Veterans United offers personalized assistance for VA loan borrowers, so you can be sure of your personal and property eligibility. Veterans United’s team can even help you get your VA loan paperwork and submit your proof of service. Veterans United employs a full team of former servicemen and women — they’re vets who have gone through the application process themselves.
- Traditional Lending
3. Best for First Time Home Buyers: Wells Fargo
Wells Fargo’s Your First Mortgage program makes it easier for first-time home buyers to invest in a home. The Your First Mortgage program may allow you to qualify for a loan with a down payment as low as 3% and a higher debt-to-income ratio. You may also qualify for closing cost assistance if you complete Wells Fargo’s home buyer education course.
Wells Fargo offers a variety of government-insured loans for first-time buyers, as well as a quick and easy online application process. You can apply for a mortgage loan online or apply in person. If you run into trouble, you can also begin your application online and complete it in person with assistance from a lending expert at one of the company’s 8,000 branches.
- The Online Experience
4. Best for Online Lender: Better.com
Better.com is a new online mortgage lender focused on providing a streamlined mortgage application process. With Better.com, you can apply for a government-backed or conventional loan from your desktop or smartphone in as little as a few minutes. Better.com cuts out unnecessary steps in the mortgage lending process, passing the savings on to you in the form of lower interest rates and a faster application.
Worried about getting the most affordable loan possible? You’ll love Better.com’s Better Price Guarantee. If you find a lower mortgage rate from a competitor, Better.com will match it and provide you with a $1,000 credit to apply toward your closing costs.
What Factors Impact Your Mortgage Rate?
Not everyone pays the same interest rate for their mortgage factors. The specific APR you’ll pay may depend on a variety of personal criteria, including:
- Your credit score: Lenders see your credit score as an indicator of your trustworthiness as a borrower. If you have a high credit score, it typically indicates that you pay your bills on time and avoid borrowing more money than you can afford to pay back. This makes you a less risky candidate for a mortgage, which means you’ll pay a lower APR on your loan. On the other hand, if your score is lower, you can expect to pay a higher rate.
- Your debt-to-income (DTI) ratio: Your DTI ratio is a percentage calculation that tells lenders what percentage of your income goes to recurring expenses like rent, minimum credit card payments and loan payments. The higher your DTI ratio, the less free income you have each month and the higher your chances of defaulting on your mortgage loan. The higher your DTI ratio, the more you’ll pay in interest on your loan.
- Your down payment: The less money you borrow, the lower your risk as a mortgage borrower. You can often secure a lower interest rate by bringing a larger down payment to the closing table.
What is a Mortgage Type?
The 2 primary types of loans are conventional and government-backed, so many first-time home buyers are surprised to learn there are multiple types of mortgage loans.
Let’s take a look at the variety of mortgage loans you can use to buy your first home.
- Conventional mortgage loans are the most common type of mortgage loan. Conventional loans can be used to buy any type of property and are offered by most lenders. You may qualify for a conventional mortgage loan with a credit score as low as 620 points and a down payment of just 3%.
- FHA loans are a type of government-backed mortgage loan with insurance from the Federal Housing Agency. An FHA loan may allow you to buy a home with a lower credit score or more debt. You can get an FHA loan with a credit score as low as 580 points and a down payment of 3.5%.
- USDA loans are a type of government-backed mortgage loan you can use to buy a home in a rural area. A USDA loan may allow you to buy a home with $0 down and a credit score of 640 points. You must meet location and income requirements to qualify for a USDA loan.
- VA loans are a special type of government-backed mortgage loan for active service members, veterans and select spouses. A VA loan can allow you to buy a home with $0 down and a credit score of 620 points or higher. You must meet service requirements before you can purchase a home with a VA loan.
What is a Mortgage Term?
Your mortgage term is the number of years you’ll make payments on your mortgage loan before you own your home. There are multiple types of mortgage terms.
30-Year Fixed
You’ll pay on your mortgage loan each month for 30 years with a 30-year fixed mortgage term. Fixed rate means that your annual percentage rate (APR) will stay the same throughout your mortgage term so your payments will be the same each month.
Thirty-year loans have higher interest rates than loans with shorter terms. Interest will accumulate over 30 years so you’ll pay more over time.
15-Year Fixed
You’ll pay on your mortgage loan every month for 15 years with a 15-year fixed loan. Interest rates for 15-year loans are lower than 30-year loans, but your principal payment will be higher each month.
5/1 ARM
An adjustable-rate mortgage (ARM) is a type of loan with an interest rate that changes throughout your term. When you compare ARMs, you’ll see your term details listed as 2 numbers separated by a forward slash.
The first number indicates the initial term of your ARM, which carries a fixed interest rate for the number of years indicated. The second number indicates how often your mortgage lender will adjust your rate.
For example, with a 5/1 ARM, you’ll pay a fixed interest rate for the first 5 years of your loan. Your lender will adjust your interest rate annually after this. Your rate may go up or down, depending on how market interest rates change.
Current Mississippi Mortgage Rates
Mortgage rates change on a daily basis and are influenced by a number of factors. The bond market, demand for mortgage loans and even the overall state of the economy can influence mortgage interest rates.
Let’s take a look at what you can currently expect to pay for a mortgage loan in Mississippi. We adjust our rates regularly to reflect current market data.
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | N/A | N/A |
| 15-year fixed | N/A | N/A |
| 7/1 ARM (adjustable rate) | N/A | N/A |
| 5/1 ARM (adjustable rate) | N/A | N/A |
Calculating Interest in Mississippi
How much should you expect to pay in interest when you buy a home in Mississippi? The answer depends on where you buy. Let’s take a look at a few current mortgage statistics for some of the largest cities in Mississippi.
| City | Average Home Value | Loan Term | Current Rate | Downpayment (20%) | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|---|---|
| Jackson | $57,000 | 30-year fixed | 0% | $11,400 | $0.00 | -$45,600.00 |
| Hattiesburg | $149,600 | 30-year fixed | 5.989% | $29,920 | $716.70 | $138,332.00 |
| Biloxi | $140,500 | 30-year fixed | 5.989% | $28,100 | $673.10 | $129,916.00 |
| Tupelo | $134,200 | 30-year fixed | 5.989% | $26,840 | $642.92 | $124,091.20 |
Lender Credit Score Minimums in Mississippi
Your credit score is a 3-digit number that indicates your reliability as a borrower. Your credit score plays a role in the level of risk your lender accepts when they issue you a mortgage. Many lenders have minimum credit scores you’ll need to have before you can get a loan.
Let’s take a look at a few of the largest lenders and the minimum score you’ll need to qualify.
| Lender | Minimum Credit Score Required |
|---|---|
| Quicken Loans® | 620 |
| Better.com | 620 |
| Veterans United | 620 |
| Luxury Mortgage | 580 |
| Wells Fargo | 620 |
Get the Loan You Need in the Magnolia State
A mortgage can involve a long-term commitment, so before you buy a home, be sure to take some time to compare each of your loan and lender options. Calculate your monthly payment and ensure you can cover all of the costs of homeownership before you apply for a loan.
The right loan and the right provider will allow you to make a commitment with confidence.
About Sarah Horvath
Sarah Horvath is a distinguished financial writer renowned for her expertise in mortgage content. With years of experience in the mortgage industry, Sarah offers invaluable insights into home financing, refinancing, and real estate trends. Her comprehensive understanding of mortgage products, coupled with her ability to simplify complex financial concepts, makes her a trusted resource for homebuyers and homeowners alike. Sarah’s dedication to providing accurate and actionable information empowers readers to navigate the mortgage process with confidence. Whether discussing mortgage rates, loan types, or tips for homeownership, Sarah’s writing is characterized by clarity, reliability, and a commitment to helping individuals achieve their homeownership goals.