Mortgage Payment in Mississippi

Market Overview: Mississippi Housing Affordable

Mississippi ranks as a entry-level / affordable housing market, with a median home price of $181,232. The state's effective property tax rate of 0.70% is lower than the national average of 1.00%, and annual homeowners insurance averaging $3,339 falls above the US median of $2,201.

These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Mississippi. Below we break down a realistic purchase scenario using state-specific data.

🏡 Purchase Example: Buying a $181,232 Home in Mississippi

Using the state's median home price of $181,232, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Mississippi:

Cost Component	Amount
Home Price	$181,232
Down Payment (20%)	$36,246
Loan Amount	$144,986
Estimated Closing Costs (3.5%)	$6,343
Total Cash Needed at Closing	$42,589

Monthly Payment (20% Down)

Item	Monthly
Principal & Interest	$916
Property Taxes (0.70%)	$106
Homeowners Insurance	$278
PMI (not needed at 20% down)	$0
Total Monthly Payment	$1,300

Annual income needed (28% DTI): $56,000/yr

PMI Scenario: What If You Put Only 10% Down?

With a 10% down payment ($18,123), you'd have a loan of $163,109 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:

Item	10% Down	20% Down (savings)
Principal & Interest	$1,031	$916
Monthly PMI	$95	$0
Total PITI+PMI	$1,510	$1,300

The lower down payment costs you an extra $210/month (P&I + PMI). You would need $65,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.

First-year interest: In year one, $9,376 of your payments go to interest alone. Over the full 30-year term, you'll pay $184,921 in total interest.

💰 State-Specific Cost Notes for Mississippi

Property taxes in Mississippi are 0.70%, meaning about $1,269/year ($106/month) on the median-priced home.

Homeowners insurance in Mississippi is notably expensive — $3,339/year. This is likely due to exposure to severe weather patterns. It adds $278/month to your housing costs.

Closing costs in a entry-level / affordable market like Mississippi typically run 2%–4% of the purchase price — roughly $6,343 on a $181,232 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.

Monthly Payment on a $181,232 Home in Mississippi

With a standard 20% down payment ($144,986 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $1,300.

Monthly Payment Breakdown (PITI)

Component	Monthly Cost	Annual Cost
Principal & Interest	$916	$10,992
Property Taxes (0.70% est.)	$106	$1,272
Home Insurance	$278	$3,336
Total Monthly Payment	$1,300	$15,600

Income Required in Mississippi

Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $56,000 to comfortably afford the median-priced home in Mississippi with 20% down at 6.5%.

How Interest Shapes Your Payments

In your first year, approximately $9,376 goes toward interest alone. Over the full 30-year term, you'll pay a total of $184,921 in interest.

Amortization Schedule — First 10 Years

* Full 30-year amortization available in our interactive calculator.

❓ Frequently Asked Questions — Buying a Home in Mississippi

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