Mississippi Mortgage Calculator

Best mortgage lenders in Mississippi

The most popular mortgage lenders in Mississippi operate nationwide. These include such recognizable names as Rocket Mortgage, Advanced Mortgage & Investment Company (AMIC), Paddio®.

How to calculate mortgage payment in Mississippi

Use our simple mortgage calculator MS to evaluate your future monthly expenses. Below, you'll find a comprehensive set of instructions broken down into individual steps.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Mississippi for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Mississippi parameters.

The initial component of the puzzle revolves around the cost of your prospective home, representing the amount you intend to invest in your future property. The down payment is the fraction of this cost that must be paid upfront. To avoid incurring expensive insurance expenses, it's necessary to come up with a minimum of 20% down payment, particularly in the case of a conventional loan. The remaining portion constitutes the principal, which corresponds to 80% of the home price when a 20% down payment is made.

The loan term refers to the period required for complete mortgage repayment through regular, scheduled payments. Fixed-rate conforming loans typically have a maximum term of 30 years, whereas adjustable-rate options usually feature shorter repayment periods.

An interest rate denotes a fixed or variable percentage of the principal amount that you are obligated to pay over the course of the loan. It's important to note that what you're actually charged is an annual percentage rate (APR), which is distinct from the interest rate. While the interest rate constitutes a significant portion of the APR, the latter also encompasses various fees such as origination fees, closing costs, and insurance payments, among others.

For a more precise assessment, the interest rate employed in these calculations is based on the current mortgage rates in your state, considering a $400,000 home price and a 10% down payment.

Median property taxes in Mississippi counties

Property taxes are another important consideration when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure that the borrower keeps up with tax and insurance costs.

Source: American Communities Survey 2016, U.S. Census

Mississippi Housing Market 2024

The past year has seen a steep increase in the market value of housing in Mississippi. This perpetuates a long-standing trend that was exacerbated by the COVID-19 pandemic. Nevertheless, the rate of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the rise for some time and are expected to increase further in the near future.

How do I calculate my mortgage payment?

The easiest way to accomplish this is by utilizing our calculator, which operates based on a straightforward formula. You can also manually calculate the amount to be paid using the same formula:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are seeking a 15-year mortgage loan with a fixed 6.99% APR (expressed as 0.0699 in fractional form). The house is priced at $500,000, and you intend to make a 10% down payment, which amounts to $50,000. Consequently, the principal amount (P) will be $450,000, which is 90% of the initial home cost ($500,000 - $50,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Mississippi

To begin with, there are several federal agencies (USDA, FHA, and VA) that provide loan guarantees for eligible borrowers, offering numerous options tailored to the budgets of many first-time homebuyers.

In addition to these government-backed programs, it's worthwhile to explore opportunities offered by the UHC (Mississippi Housing Corporation) for residents of Mississippi. Specifically, first-time homebuyers who qualify for an FHA loan and have a FICO score of at least 660 can apply for the FirstHome program, which provides assistance with down payments and closing costs. This program covers up to 6% of the loan amount and is available solely in the form of a 30-year fixed-rate second loan. If you don't meet the criteria for the FirstHome program, don't lose hope. The Mississippi Housing Score Loan is an alternative option that covers up to 4%, with a minimum acceptable credit score of 620.

Here are some valuable tips for first-time homebuyers:

1. Obtain pre-approval in advance to enhance your credibility in the eyes of home sellers. It's advisable to seek pre-approval letters from not just one, but at least two or three different lenders.
2. Compare various mortgage rates by considering a minimum of three lenders; the more options you explore, the better.
3. Conduct preliminary calculations based on the pre-approved loan amount to plan for your future expenses effectively.
4. Save as much as possible for a down payment, and start saving early. A larger down payment reduces the principal amount, which can subsequently lower your overall expenses. Therefore, initiating savings in advance is crucial.
5. If you are eligible for a VA loan, prioritize this option above all others.
6. Explore government-backed plans and local assistance programs, as they may present enticing opportunities that you don't want to miss out on.
7. If possible, work on paying off any existing debts before embarking on your home-buying journey.