Closing Costs in Mississippi
The average closing cost in Mississippi is $12,827, which is 6.76% of the home price. Mississippi has no transfer tax, which saves buyers money.
Mississippi has no state transfer tax on real estate transactions, which keeps closing costs notably low. Combined with the state's already-low home prices, the total cash needed to close on a Mississippi home is among the lowest in the country. Title insurance premiums are affordable due to low property values, and the absence of a mandatory attorney requirement keeps professional fees optional.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$12,827
As % of Price
6.76%
Transfer Tax
None
Attorney Required
Yes
Closing Cost Breakdown for a $189,849 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $1,519 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $949 |
| Transfer Tax | N/A |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $184 |
| Prepaid Homeowners Insurance (1 year) | $570 |
| Prepaid Interest (15 days) | $406 |
| Estimated Total | $6,278 |
* Estimates based on average Mississippi home price of $189,849 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Mississippi
Enjoy Zero Transfer Tax
Mississippi charges no state or local transfer tax on real estate sales. Combined with some of the lowest home prices in the nation, this makes Mississippi one of the most affordable states for total closing costs.
Use MHC Home Buyer Programs
The Mississippi Home Corporation offers the Smart Solution program with down payment assistance up to 3.5% of the loan amount. The HAP program provides additional closing cost assistance for qualifying buyers.
Budget for Wind and Hail Insurance on the Coast
Gulf Coast properties south of I-10 require separate wind and hail insurance, which can add $2,000-6,000 annually. The Mississippi Windstorm Underwriting Association (MWUA) provides coverage where private insurers won't, but rates can be high.
Get a Termite Bond
Mississippi's warm, humid climate makes termite damage extremely common. Most Mississippi home sales include a termite inspection and a transferable termite bond. Verify the bond is current and transferable — maintaining a bond costs $250-400 annually but protects against thousands in potential damage.
Legal Context for Mississippi Closings
Conveyance Document
Warranty or quitclaim deed
Security Instrument
Deed of trust
Foreclosure Process
Non-Judicial
Attorney Required
Yes
Mississippi uses warranty or quitclaim deed for property transfers and deed of trust as the security instrument. An attorney is required at closing, which adds to your closing costs.
