Mortgage and Refinance Rates in Mississippi

Today's Rates In Mississippi

Finding a low-rate mortgage in Mississippi isn't hard, as long as you know what you're doing. Your bigger challenge may be deciding which part of the Magnolia State you'd like to call home.

Mortgageloan.com can assist you at every stage of your mortgage search. You can learn more about mortgage types and money-saving techniques by reading our informative articles. Once you know the options, you can clarify your own objectives, and then get started shopping around. If you click our lender directory, you'll find a long list of qualified lenders. Or you can use our rate quote form to ask lenders to provide you with a personalized, no-obligation quote.

Shopping for Mississippi mortgage rates

Shopping for home loans can be tricky. You can't just check the ads to see which lender offers the lowest rates. For one thing, those rates are not likely to be the ones you'd receive. Those rates are priced for a certain type of borrower taking out a certain type of loan for a certain type of property. Odds are, you won't match up on all of them.

Mortgage rates are highly individual. Each is priced based on characteristics of the borrower and of the loan itself. The mortgage rate you'll receive from any lender will depend on a complex mix of factors, which may include your credit score, down payment, loan amount, type of property, debt-to-income ratio and more.

Each Mississippi mortgage lender has their own formula for how they price mortgage rates and how they weigh the various factors in determining them. So just because Lender A had the lowest rate for Borrower Z, that doesn't mean they'll have the lowest rate for you. You might get a better rate from Lender B or C.

That's why it's important to get personalized rate quotes when shopping for a mortgage. Advertised rates can give you an indication for what rates lenders are offering for different types of loans, but to find out the rate they'll give you, you need to ask for a personalized rate quote. That will take into account factors like your credit score, down payment, loan amount and property type to give you an accurate quote of the rate they'd be willing to offer you.

You can get rate quotes by contacting lenders directly or by using a form like the one at the top of this page, which can be used to request quotes from several lenders at once.

Comparing mortgage rates in Mississippi

Another thing to remember is that mortgage rates are only part of the picture. You also want to pay attention to the closing costs and other fees charged along with the loan as well. Closing costs can be anywhere from 2-6 percent of the loan amount, which is a pretty hefty bite. So a loan with a low rate and high fees may not be as good a deal as it appears.

You can use a mortgage calculator to crunch all the numbers and compare the total costs of different loans over time. You can also simply compare the APR on different loan offers rather than the rates themselves. APR stands for annual percentage rate, and reflects the total cost of a loan over time, both the rate and fees. It isn't an exact comparison, particularly if you end up selling or refinancing the home after a few years, or if it's an adjustable-rate mortgage, but overall it's a better indicator than just the mortgage rate itself.

Conforming Mortgages

Some of the best mortgage rates in Mississippi can be found on conforming mortgages. The most popular type of residential home loan in the country, conforming mortgages are defined by a set of loan criteria established by Fannie Mae and Freddie Mac, such as maximum loan amount, maximum borrower debt-to-income ratio, and minimum borrower documentation requirements.

These limits are designed to promote affordable mortgages for lower- and middle-income families by ensuring a steady flow of liquidity between investors and mortgage lenders. Investors who buy bundles of loans meeting these criteria receive certain guarantees from Fannie Mae and Freddie Mac, which allows those loans to have lower rates and more favorable terms than loans that do not meet those standards.

Mortgage rates on conforming loans are closed tied to a borrower's credit score and down payment (or home equity if refinancing), which higher scores and larger down payments getting the best rates. However, you can still qualify for a conforming mortgage with a credit score as low as 620, while borrowers with good credit can make down payments of as little as 3 percent.

FHA loans

One of the main alternatives to conforming mortgages are FHA loans, which are somewhat easier to qualify for. Down payments can be as little as 3.5 percent for borrowers with credit scores as low as 580, and some lenders will allow scores even lower with larger down payments. Borrowers with lower scores and small down payments may find they can get better rates than they could on a conforming loan as well. This makes FHA loans a popular option for borrowers with weaker credit or limited financial resources, including many first-time homebuyers.

Second Mortgages

If you have home equity and you need a little extra cash, the second mortgage might be the right solution. Second mortgages have some important features:

• Second mortgages are secured by your home equity, or the value of your property minus outstanding first mortgage debt.
• They come in two forms: the home equity line of credit (HELOC), or the home equity loan. The HELOC has a variable rate and interest-only payment. The home equity loan is a fully amortizing, fixed-rate debt.
• Second mortgage interest rates are higher than first mortgage rates, because the lender is taking a lower priority lien position to the first mortgage lender.

Comparing

When it's time to check on pricing for specific Mississippi mortgages, you can request a free quote from competing lenders in just minutes on Mortgageloan.com. Or you can call Mississippi lenders personally; you'll find them in our Mississippi broker directory.

Certainly a good lender will walk you through your options, and help you determine which mortgage types are most appropriate. But if you prefer to tackle some of this groundwork yourself, you can always rely on Mortgageloan.com's interest rate table, mortgage calculators, and informative articles.

Once you receive written mortgage offers, you should head back to those calculators. They'll help you compare two or more mortgage quotes to one other and against your household budget. Just put in the numbers and hit calculate. As you look at the numbers of each offer, you'll quickly see which one is best for you.