MISSISSIPPI MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Mississippi.
Current mortgage refinance rates in
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Compare mortgage refinance rates in Mississippi.
Key Points
• Mortgage refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, and housing inventory.
• In Mississippi, refinance rates have experienced a swing from 3.15% in 2021 to 7.00% in 2023. Keeping an eye on rate trends can help you make the right move at the right time.
• FHA and VA loans typically come with lower mortgage refinance rates and more flexible terms than conventional loans, making them attractive options for eligible homeowners.
• Before you jump into refinancing, it’s important to consider if the potential savings are worth the fees and closing costs, which can range from 2% to 5% of your loan amount.
• A reduction of 1% in your interest rate can make a big difference in your monthly payment and the total interest you’ll pay over the life of the loan.
• Online refinance calculators are your friends. They can help you crunch the numbers and compare various mortgage refinance rate options.
Introduction to Mortgage Refinance Rates
First of all, what is a mortgage refinance? It’s what you do when you want to give your current home loan a makeover. You get a new loan with different terms, which are ideally more favorable than those of your existing mortgage. You also may be able to get a lower interest rate.
Homeowners thinking about refinancing have many different motivations for doing it, in Mississippi and elsewhere. Maybe you are looking to lower your monthly overhead, or to tap some of your home equity so you can put in those much-needed new windows. In addition to the question of why, there is also the consideration of when.
This guide can help you understand just how a mortgage refinance works and how to get the best rates in the market today, given factors that affect Mississippi homeowners.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
What Factors Influence Refi Rates?
Mortgage refinance rates are determined by a combination of outside economic factors and a borrower’s financial profile. When it comes to the economics part, the most important variables include Federal Reserve policy, inflation, and housing inventory.
The bond market — especially the performance of the 10-year U.S. Treasury Note — plays a key role in determining current mortgage rates. When the Treasury Note’s yield increases, mortgage interest rates generally rise, too. In times of rising inflation, mortgage rates often climb. When inflation is in check, you might see interest rates drop.
On top of all of this, don’t forget to consider your own financial situation. A strong credit score — determined by your history of on-time payments, your credit utilization ratio, and your responsible management of installment loans and credit lines — is an asset when you apply for a mortgage refi.
A refi can truly benefit your finances. Even a 1% drop in your mortgage interest rate after you refinance can slashing your monthly payments and the interest you will pay over the life of your mortgage loan.
How Interest Rates Affect Mortgage Refi Affordability
Interest rates are a huge deal, in Mississippi and everywhere. They help determine your monthly refinance payment, along with your loan amount and repayment term. A $200,000 loan carrying a 6.00% interest rate and a term of 30 years has a monthly payment of $1,199. But if that interest rate jumps to 8.00%, the monthly payment would be a less wallet-friendly $1,467. Over the life of the loan, the lower interest rate could amount to nearly $100,000 in savings.
Check out the chart below — a small change to your interest rate can have a substantial impact on your monthly budget and the overall affordability of your home loan.
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Why Should You Refinance in Mississippi?
Depending on your financial goals, refinancing your Mississippi mortgage may give you multiple benefits. If current interest rates are lower than on your existing mortgage, refinancing may reduce your monthly payment. It can also save you money over the life of your loan. Alternatively, you can use a refi to switch from an adjustable-rate mortgage to a fixed-rate loan, offering you increased stability and predictability.
Whatever your reason for wanting to refinance, you’ll need to have 20% equity or more in your home before moving on it, especially if you are planning to cash out some equity in the process. Now, why and how to refinance a mortgage? Keep reading.
Common Reasons to Refinance a Mortgage
These are popular reasons why you, as a Mississippi homeowner, might choose to do a refi:
• You know you will qualify for a lower interest rate, due to improved credit or market conditions.
• You’d like to extend your repayment term to lower your monthly payments, or shorten the term so you can pay off the loan faster.
• You’re wanting to tap into your home equity to fund a significant expense, like a child’s education or a home renovation.
• Your adjustable rate mortgage (ARM) will reset soon, and you’re hoping to switch to a fixed-rate loan to control your monthly payment.
• You have an FHA loan and 20% equity, and you want to stop paying the FHA mortgage insurance premium.
• You’d like to release a cosigner on your current mortgage.
How to Get an Optimal Mortgage Refi Interest Rate
As mentioned, your financial history will impact your mortgage refinancing costs, including the interest rates lenders offer you. Homeowners with strong credit and a favorable debt-to-income ratio are likely to secure lower rates on average. Here’s what you need to do:
• Work on building your credit score by paying bills and loan payments punctually every month.
• If possible, reduce your debt-to-income ratio to 36% or less.
• Shop around and look at multiple lenders, including brick-and-mortar banks, credit unions, and online institutions to compare offers.
• Think about buying mortgage discount points.
• Grab the shortest loan term you can afford. Switching to a 15-year mortgage could save you a lot in the long run, even if it means you’ll have higher monthly payments.
Mississippi Mortgage Interest Rate Trends
The rise and fall of mortgage rates can look like a rollercoaster. In 2021, the average 30-year fixed mortgage rate was just 3.15%. Fast-forward to 2023, and it had soared to 7.00%. In 2024, there was an expectation of a dip in rates, but in early 2025, experts are predicting that rates will stay elevated longer. If you’re considering a mortgage refi, it may still be a smart move.
Historical U.S. Mortgage Interest Rates
In the graph below, you can see a longer view of national mortgage rates. In the early 2000s, they were around 6.00%. In 2020, they dropped below 3.00%, and that decrease made Americans believe that low rates were “normal.” In 2023, they rose again, hitting around 7.00%.
Some people complain about high interest rates, but current mortgage refinance rates are still sitting below the 50-year average.
Historical Interest Rates in Mississippi
Mississippi refinance rates generally follow national trends, but they can be higher or lower depending on the region. In the past, Mississippi has seen some of the country’s lowest refinance rates, but also times when rates were higher than the national average. Understanding historical trends can help you make the most informed decisions about refinancing.
| Year | Mississippi Rate | National Rate |
|---|---|---|
| 2000 | 8.04 | 8.14 |
| 2001 | 6.89 | 7.03 |
| 2002 | 6.52 | 6.62 |
| 2003 | 5.66 | 5.83 |
| 2004 | 5.85 | 5.95 |
| 2005 | 5.89 | 6.00 |
| 2006 | 6.66 | 6.60 |
| 2007 | 6.62 | 6.44 |
| 2008 | 6.13 | 6.09 |
| 2009 | 6.29 | 5.06 |
| 2010 | 5.15 | 4.84 |
| 2011 | 4.57 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.99 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 4.02 | 3.91 |
| 2016 | 3.87 | 3.72 |
| 2017 | 4.22 | 4.03 |
| 2018 | 4.62 | 4.57 |
Recommended: How Soon Can You Refinance a Mortgage?
Why You Should Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, shop around. Look at multiple lenders and get prequalified to find out your borrowing power and what sort of rates you’re eligible for. MAke sure you focus on the annual percentage rate (APR), which will crunch the interest rate, fees, and discount points into one handy number for comparison. And remember that the lowest interest rate might not always mean the biggest savings.
Choose the Right Mortgage Refi Type
Mortgage refinance rates in Mississippi vary by loan type. Every loan option offers unique features, from fixed vs. variable rates to no closing costs. Knowing your options helps you select the refi with the features you need.
Conventional Refi
Conventional refis, which are also referred to as rate-and-term refis, tend to have higher rates than government-backed mortgages like FHA, VA, and USDA loans. Conventional refinances enable you to adjust your interest rate or loan term, letting you reduce your monthly payment or the amount of time it takes to pay off your loan.
A conventional refi is a great fit for homeowners who’ve got both solid equity and a strong credit history. When you secure a lower mortgage refinance rate, it can help you save money over the life of your loan and reach your financial goals more swiftly. That’s a win-win.
15-Year Mortgage Refi
A 15-year mortgage refinance typically shortens the length of your loan repayment. This can lead to significant savings over the repayment period, even though your monthly payments will end up being higher. For example, if you have a 30-year, $1 million loan at a 7.50% mortgage refinance rate, you’ll have a monthly payment of around $6,992 — and total interest of $1,517,167 over the life of the loan.
Refinance to a 15-year mortgage at a 7.00% rate and your monthly payment would increase to $8,988. That sounds like bad news, but with that rate and term, your total interest would drop to $617,891. That means you’d save nearly $900,000 in the end. Big difference, right? Obviously, cash flow plays a critical role in this scenario.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with lower mortgage refinance rates than fixed-rate loans, but those rates change over time. If you intend to sell the house before the time when the rate would adjust, refinancing from a fixed-rate mortgage to an ARM can help lower your monthly payment initially. This may save you money in the short term.
An adjustable-rate mortgage refi can be a great idea if your short-term plans include a move or if you expect to increase your income in the coming years.
Cash-Out Refi
A cash-out refinance is a powerful tool. It lets homeowners take value out of their properties by initiating a new mortgage for more than they owe. And you can use the cash for whatever you need. It’s a go-to refi for people planning home improvements or paying off high-interest debts.
The amount you can borrow is based on the equity you have in your house. For example, if your home is worth $500,000 and your mortgage balance is $300,000, you would have $200,000 in equity. With a cash-out refi, a lender may approve you to borrow up to 80% of your equity. That would leave you with a chunk of available cash ($100,000) after you pay off your existing mortgage that could help you pay off debt or finance a major expense.
FHA Refi
FHA refinances, which are backed by the Federal Housing Administration, usually come with more favorable mortgage refinance rates that are sometimes even a full percentage point lower than those of conventional loans. Different types of FHA refinance options exist: FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are for homeowners who carry existing FHA loans, while the latter two are available to those who do not have FHA loans.
You can pay off high-interest debt or home improvements with the cash-out refinance. The 203(k) refinance is only for home improvements. Any of these FHA options can help you refinance to get a more affordable interest rate, lower your monthly payment, or access your home’s equity for other financial needs.
VA Refi
VA refinances are backed by the U.S. Department of Veterans Affairs and consistently offer some of the most competitive mortgage refinance rates on the market. That said, to be eligible for a VA refi, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must be holding a VA loan. This type of refinance can significantly reduce your monthly payments and offer you substantial interest savings over the life of your loan.
Compare Mortgage Refi Interest Rates
These pointers and tips can help you find and qualify for the best refi interest rates in Mississippi.
• First, compare offers from multiple lenders. This takes time and energy, but pays off in terms of saving you money.
• Look at the annual percentage rate (APR) — it incorporates fees and discount points. You’ll want to figure out both the total loan cost and your break-even point (that is, the juncture at which your refi savings cancels out the out-of-pocket cost of the refinance).
• Keep an eye on your credit score and your home’s value — the higher they are, the more favorable the rates lenders will offer you.
• If you are working to build your score and you qualify for a lower interest rate, aim to keep your debt-to-income ratio under 36% and your credit utilization rate below 30% (some financial pros even advise keeping it under 10%).
• Be meticulous about paying debts on time. That is the single biggest contributing factor to your score. Automating payments is an easy way to avoid a slip-up.
Online Refinance Calculators
Online calculators are helpful tools that can assist you in computing all kinds of housing-related expenses. As you think about whether it makes good sense to refinance and how large a monthly payment you’ll be able to afford, an online refinance calculator will be a useful tool. Here are a few of our favorite calculators.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage in Mississippi can be a smart financial move. It does require thinking about your goals, though, along with doing your research on the costs involved. To make the best decision, it’s wise to explore various types of refinancing to see which one best suits your needs and financial goals.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Is it possible to lower my interest rate without refinancing?
It’s hard to lower a mortgage interest rate without doing a refi. You can reduce your monthly payment, though, with a mortgage recast. You do this by making a lump-sum payment toward your principal balance. The lender can then “recast” your monthly payment amount by re-amortizing the loan. If you face financial hardship, you can also ask your lender about a loan modification, but lenders most often suggest a refi or a recast first.
Will I pay closing costs when I refinance my mortgage?
Yes, you need to expect to pay closing costs. Typically, closing costs range from 2% to 5% of the loan amount. They include a variety of fees that are associated with processing and closing the refinance transaction, including appraisal fees, title insurance, lender fees, and other charges. You’ll need to consider these costs when thinking about refinancing. Make sure the potential savings are greater than the costs.
Will refinancing ding my credit score?
Yes, refinancing can cause a temporary dip in your credit score. This is due to the hard inquiry and the new account on your credit report — but this impact is usually minor and short-lived. If you have a high credit score, the refinancing ding might be barely noticeable.
Can refinance rates be expected to drop anytime soon?
There’s no crystal ball predicting future mortgage rates, but look at key indicators and you may get a sense of where rates are headed. If the 10-year Treasury Note rate goes up, the housing market is hot, or the economy is busting out and looking strong, it’s unlikely that you’ll see rates falling in the near future. Keep an eye on the current refinance rates in Mississippi so you’ll know when the time is right to refinance.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance