Mississippi isn’t the most popular destination in the United States and might not be the first state that comes to mind when looking for a home, but it should be! Also known as the Magnolia State, the state of Mississippi has so much to offer and makes for the perfect place to raise a family – or start a family!
Some of the most prominent reasons why people should consider buying a home in Mississippi are the low cost of secondary education, abundance of history, unique architecture, and surplus of nature (which makes for exciting adventures) – of course, you can’t forget about the famous food and musical prowess.
With a population of nearly three million people, you’ll be joined by some of the friendliest neighbors and will be shocked at the camaraderie. If you’re considering moving to Mississippi, some of the most popular cities and towns to look at include Madison, Ridgeland, Flowood, Tupelo, Oxford, Clinton, and Ocean Springs.
So, How Much Are Houses in Mississippi?
Whether you’re already sold on living in the state of Mississippi or need some more convincing, one question that’s likely on your mind is – how much are houses in Mississippi? No matter how much you want to live in the area, it’s important that it meets your financial needs and suits your overall budget.
The good news is Mississippi has some affordable housing options for those ready to call this place home. According to Zillow, the average home value in the state is just over $160,000 – which is up 3.6% over the past 12 months – and the median days to pending is just 18 days, meaning things move fast.
The median sale to list ratio in Mississippi is 0.981 (average sale rate of just over 98%). Roughly 18% of the houses that hit the market in Mississippi are sold over the listing price, while 61% of all home sales are under the listing price – there’s certainly opportunity to find a home at a good price in the state.
How Much is a Down Payment on a Mississippi Home?
When taking out a loan for a home, most lenders are going to require you to put forth a down payment – which is nothing more than a percentage of the home’s sale price. The down payment is due up-front and is usually 20% of the sale price – some down payments are as low as 3%, while the average is about 7%.
Taking the average home value in Mississippi into consideration – which is just over $160,000 – potential homebuyers in the state should expect to fork up a down payment of around $32,000 (down payment of 20%), That down payment can be as low as $4,800 (3%), but is around $11,200 (7%) on average.
Of course, no two people will end up paying the same down payment due to all the factors that play a role in that payment. The type of loan you’re applying for, the sale price of the home, the homebuyer’s credit score and income, how long the loan is for, interest rates, and so much more play a role in the amount.
How Much Are Closing Costs in Mississippi?
In addition to the down payment, homebuyers and sellers are both expected to pay a number of costs on closing day – known as closing costs. These expenses are often considered ‘hidden’ because a lot of first-time buyers and/or sellers aren’t aware of them until they finally close in on a deal for a new home.
In general, buyers can expect to pay anywhere from 2% to 5% of the home’s sale price when it comes to closing costs – while sellers pay anywhere between 6% and 10%. For a $160,000 home, buyers will pay between $3,200 and $8,000 in closing costs – sellers can expect to pay between $9,600 and $16,000.
If you’re interested in buying a home in Mississippi, some of the typical closing costs you can expect to pay include the escrow amount, impound account, loan origination fee, title insurance, appraisal fee, attorney fees, homeowner’s insurance, property taxes, application fee, title insurance, and much more.
How Much is a Monthly Mortgage Payment in Mississippi?
Since most homebuyers aren’t going to have the cash to pay for a house in-full, they’re going to need some type of a loan to cover the sale price – which means they’ll have a monthly mortgage payment due over a long period of time. This allows you to buy a home now and pay it off little-by-little over time.
In the state of Mississippi, interest rates for a 30-year fixed mortgage are around 6.08% – which is roughly 0.24% lower than the national average. That percentage increases to 6.38% for a 20-year fixed mortgage, but drops to 5.39% for a 15-year fixed mortgage. A 5-year ARM comes with a 5.78% interest rate.
For those buying a $160,000 home (average price in Mississippi), you can expect to pay around $946 per month with a 6.08% interest rate and 20% down payment ($32,000) – that monthly payment increases to $1,212 if you put forth a 3% down payment and $1,111 with a 7% down payment (which is the average).
We’re Always Buying Homes in Mississippi!
Are you trying to sell a home in Mississippi? Is your home spending way too much time on the market? Do you need cash for your home fast? Are you trying to avoid the hassle that often comes with the home-selling process? If you answered ‘yes’ to any of these questions, then contact Troy Kearns today!
At Sell Your House Fast MS, we’ll send you a free, no-obligation cash offer for your home – no matter what reasons you have for selling it. We buy homes in any condition and ensure our clients are given a reasonable cash offer that avoids the hassle with a smooth and simple process from start to finish.
Give us a call anytime and anywhere at (601) 210-2151 or email us at [email protected].
