Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Mississippi
Mississippi has the lowest average home prices of any state in the country, with an average of just $160,000. For buyers on a tight budget or seeking maximum equity upside, Mississippi offers an entry point into homeownership that is essentially unmatched in any other state. Jackson, the state capital and largest city, has a diverse economic base anchored by healthcare, government, and manufacturing, with older neighborhoods offering large homes at prices that would be unimaginable in most other states.
The Gulf Coast region — including Biloxi, Gulfport, and Ocean Springs — has its own distinct market shaped by tourism, gaming, and hurricane recovery. Home prices here trend somewhat higher than the state average, and buyers should factor in flood insurance costs for properties near the coast. Hattiesburg, home to the University of Southern Mississippi, has a stable market driven by education and healthcare employment.
Mississippi's homestead exemption provides meaningful tax relief for owner-occupants, with additional credits for seniors and disabled veterans. The Mississippi Home Corporation's Smart Solution Mortgage and $6,000 forgivable grant make the path to homeownership exceptionally accessible — particularly for FHA buyers where the grant can cover virtually the entire down payment requirement.
Key Housing Facts for Mississippi
Average home price: $160,000 (lowest in the US)
Average effective property tax rate: 0.63%
Average homeowners insurance: $1,700/year
Homestead exemption available for owner-occupants
Gulf Coast flood insurance may be required for coastal properties
Major markets: Jackson, Biloxi, Gulfport, Hattiesburg, Tupelo
Frequently Asked Questions
Mississippi's average effective property tax rate is approximately 0.63%, below the national average. On a $160,000 home, you'd pay roughly $1,008 per year in property taxes. Mississippi's homestead exemption reduces the assessed value of a primary residence for owner-occupants, with additional credits available for seniors and disabled veterans.
Mississippi Home Corporation (MHC) offers the Smart Solution Mortgage with competitive interest rates and the MHC Down Payment Assistance program providing up to $6,000 as a forgivable grant after three years of occupancy. The Mortgage Revenue Bond (MRB) program provides below-market rates for qualifying first-time buyers with income and purchase price limits by county.
With Mississippi's average home price of $160,000, a 20% conventional down payment is $32,000. FHA loans require 3.5% ($5,600). Mississippi's very low home prices make FHA loans with 3.5% down one of the most affordable paths to homeownership available anywhere in the country. MHC's $6,000 grant can cover most or all of the FHA down payment requirement.
Closing costs in Mississippi typically range from 2–3% of the loan amount. On a $160,000 home, expect approximately $3,200–$4,800 in closing costs. Mississippi does not have a state transfer tax, which helps keep closing costs low. Given the state's very affordable home prices, total out-of-pocket costs at closing are among the lowest in the country.