Average closing costs in Mississippi

Buying a home in Mississippi comes with several up-front costs, and understanding closing costs can make the process feel much more manageable. These expenses cover the services, documentation, and legal steps required to finalize the sale. In Mississippi, both buyers and sellers split the responsibility for these costs, but the exact amount depends on the property, loan type, and local requirements. Knowing what to expect early on can help you budget confidently and avoid surprises as you approach closing day.

Key takeaways:

• Closing costs in Mississippi average about 4.85% of the home’s purchase price for buyers.
• Typical buyer expenses include loan origination fees, inspections, appraisals, and title insurance.
• Sellers often pay for agent commissions (which are fully negotiable), prorated taxes, deed preparation, and certain title fees.
• Many fees—including lender charges, title services, and select third-party costs—can be compared or negotiated to help lower your total closing expenses.

How much are closing costs in Mississippi?

With the median home sale price around $268,000, a buyer in Mississippi can expect to pay roughly $12,827 in closing costs, which equals about 4.85% of the home’s purchase price. Actual costs may vary depending on the property, the loan type, and the buyer’s financial details. Closing costs typically include lender fees, title insurance, appraisal charges, escrow services, taxes, and other required expenses that both buyers and sellers contribute to at the end of the transaction.

Closing costs can also differ across Mississippi due to variations in local taxes, recording fees, and service providers. Homes in cities like Jackson, Gulfport, or Oxford may have higher or lower totals based on insurance rates, loan programs, and regional pricing. It’s important for buyers to plan for these differences when estimating their total cash to close.

What affects closing costs in Mississippi?

Several factors can influence how much you’ll pay in closing costs, including:

• Property location: Recording fees, insurance rates, and taxes differ by county and city.
• Home price: Many fees are tied to the purchase price and increase as the price rises.
• Loan type and down payment: FHA, VA, USDA, and conventional loans each carry different fees, insurance requirements, and down payment thresholds.
• Title and escrow fees: Costs vary by title company and the complexity of the title search.
• Taxes and recording fees: Local transfer taxes, prorated property taxes, and document recording charges vary by municipality.
• Insurance and prepaid items: Includes homeowners insurance, prepaid interest, and escrowed taxes.

Understanding how these factors come together helps clarify your total cash to close and gives you a clearer picture of the home’s true value.

Are closing costs in Mississippi above average?

Nationally, closing costs typically range from about 0.4% to 3% of a home’s purchase price. Based on the Lodestar’s average national sales price of $438,236, typical national closing costs can fall between roughly $1,750 and $13,150. With an average buyer cost of 4.85%, Mississippi trends slightly above the national midpoint, though still well within expected norms. Using the Federal Reserve’s average national home price of $512,800, typical closing costs range from $15,384 to $30,768, putting Mississippi’s percentages in line with national expectations.

When compared with nearby Southern states, Mississippi’s closing costs fall within a similar range. Alabama averages about 4.05%, while Arkansas is close at 4.29%, putting all three states in a comparable bracket. Differences between them often come down to local factors such as title fees, insurance premiums, and county recording costs rather than major statewide policies.

Overall, Mississippi aligns closely with national standards for closing costs. For buyers wanting a deeper breakdown of what happens at the end of the transaction, it may help to review guides on closing on a house and how transfer taxes influence final costs.

What do Mississippi’s closing costs include?

Closing costs in Mississippi cover the fees and services needed to complete a home purchase. Some expenses are tied directly to your mortgage, while others relate to inspections, title work, insurance, and administrative steps required to transfer ownership. Understanding what these charges include can help you plan ahead and feel more prepared for closing day.

• Lender-related fees: Charges such as the loan application, origination, and credit check; some lenders may also include rate-lock fees.
• Appraisal fees: Paid to confirm the home’s current market value.
• Home and pest inspection fees: Covers professional evaluations to identify structural issues or pest concerns.
• Title search and insurance: Confirms clear ownership history and protects both buyer and lender against title disputes or liens.
• Survey fees: Used to verify lot boundaries and easements when required.
• Courier and recording fees: Covers document delivery and official recording with local offices.
• Notary fees: Ensures all signatures on closing documents are legally verified.
• Prepaid items: Includes upfront costs such as property taxes, homeowners insurance, prepaid interest, and potential homeowners insurance dues.
• Private mortgage insurance (PMI): Required when the buyer puts down less than 20%.
• Attorney fees: Charged if a buyer or seller chooses legal review or representation.
• Mortgage discount points: Optional payments that reduce your mortgage interest rate.

Each fee supports a secure and accurate property transfer. Reviewing your Loan Estimate and Closing Disclosure will show exactly what you’re paying and why.

Who pays closing costs in Mississippi?

Both buyers and sellers in Mississippi are responsible for certain closing costs. While there are typical expectations for each side, many fees can be negotiated depending on the market and the purchase agreement.

Closing costs for buyers

Buyers in Mississippi usually cover most lender- and property-related fees. These expenses support the mortgage process and ensure the home is properly inspected, insured, and legally transferred. Common buyer closing costs include:

• Loan application and origination fees
• Home appraisal and inspection
• Title search and lender’s title insurance
• Prepaid expenses
• Recording and notary fees
• Attorney fees (if used)
• Mortgage discount points

These costs help protect both the buyer and the lender by confirming the home’s value, condition, and legal standing. Planning ahead for these expenses can help buyers stay on track financially. For more guidance on preparing for up-front home buying expenses, check out first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Mississippi also face several closing costs, including some that overlap with buyer expenses. The largest seller cost is typically the real estate agent commission—which is fully negotiable—along with prorated taxes and administrative fees. Common seller closing costs include:

• Real estate agent commissions
• Owner’s title insurance and title-related fees
• Prorated property taxes and HOA dues
• Deed preparation and recording fees
• Attorney fees (if used)
• Outstanding mortgages and liens
• Seller concessions

How to reduce your closing costs in Mississippi

Some closing costs in Mississippi — such as title insurance, recording fees, property taxes, and prepaid interest — are fixed and can’t be negotiated. However, several others are flexible, and buyers who plan ahead can often reduce their total upfront expenses.

• Research home buyer assistance programs: Mississippi offers a range of state-backed and local programs that can help eligible buyers with upfront expenses. The Mississippi Home Corporation (MHC) provides options like the Smart6 program, which may offer down payment or closing cost support. Many rural parts of the state also qualify for USDA loans, which require little or no money down and can reduce your total cash-to-close.
• Shop around for a lender: Lender fees can vary widely. Comparing multiple loan estimates may help you find a lender with lower origination fees or more competitive terms. More tips appear in how to choose a mortgage lender.
• Negotiate seller concessions: In certain Mississippi markets, sellers may be open to covering part of your closing costs as a credit at closing. Explore strategies for seller concessions that can reduce your out-of-pocket costs.
• Consider a no-closing-cost mortgage: Some lenders offer no-closing-cost loan options where fees are rolled into the loan balance or exchanged for a slightly higher interest rate, reducing what you pay upfront.

Even though not every fee is flexible, understanding which closing costs are negotiable can help you identify opportunities to save.

FAQ on closing costs in Mississippi

Does Mississippi require paying for a real estate attorney?

Mississippi doesn’t require buyers or sellers to hire a real estate attorney for a home purchase. Most closings are handled by title companies and settlement agents, though some buyers choose to bring in an attorney for added clarity or support.

When do Mississippi buyers find out their closing costs?

Buyers receive an early estimate of their closing costs shortly after applying for a mortgage. Your lender will send a Loan Estimate within three business days, followed by a Closing Disclosure at least three days before closing with final, confirmed numbers.

When and how will I pay my Mississippi closing costs?

Most Mississippi buyers pay closing costs on closing day, typically via cashier’s check or wire transfer to the title or settlement company. Your Closing Disclosure outlines the exact amount due and payment instructions. Learn more about what to expect when it’s time to close on a house.

How can I save up for Mississippi closing costs?

With closing costs averaging around 4.85% of the home’s purchase price, setting up a savings plan—whether through monthly contributions, tax refunds, or bonuses—can help you prepare. You may also benefit from state and local homebuyer programs. For more tips, see how to save for a house.

Are Mississippi closing costs deductible on my taxes?

Most closing costs aren’t tax-deductible, but some—like mortgage interest paid upfront or property taxes—may qualify. Homeowners who itemize can also take advantage of ongoing deductions. Learn more in are closing costs tax deductible and tax deductions for homeowners, or refer to IRS Publication 530 and Tax Benefits for Homeowners.

The bottom line: Prepare your finances for Mississippi closing costs

Closing costs in Mississippi typically average around 4.85% of the home’s purchase price, covering lender fees, title services, insurance, and local recording charges. Both buyers and sellers contribute to these expenses, though the exact totals can vary depending on the property, loan type, and location. Understanding which costs are fixed and which may be negotiable can help you budget with confidence and avoid surprises at the closing table. If you’re preparing to buy a home in Mississippi, now is a great time to review your finances, start saving early, and get preapproved to begin the mortgage process.