Arkansas Mortgage Calculator

In Arkansas, Lafayette County has the lowest median monthly mortgage payment at $510, while Benton County has the highest at $2,230. This difference in monthly mortgage payments can significantly impact your immediate budget and long-term financial health, affecting your ability to save and invest for the future.

Using MoneyGeek's mortgage calculator in Arkansas allows you to estimate your monthly mortgage payment, choose suitable loan terms and see the total interest paid over the loan's lifetime. Input your purchase details into the calculator to see your financial commitment clearly.

Mortgage Calculator

Simply estimate your Arkansas loan payments, taxes and PMI.

Updated: Sep 4, 2024

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Home Price

Down Payment (20%)

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30-Year Fixed

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Optional: add taxes, insurance, HOA Fees

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Property tax

Homeowner's insurance

PMI

HOA fees

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Get personalized mortgage rates from Arkansas.

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Key Takeaways

In Arkansas, Lafayette County has the lowest median monthly mortgage payment at $510, while Benton County has the highest at $2,230.

A mortgage calculator helps find a monthly payment that fits your budget, adjust loan terms and estimate total interest over the loan's life.

The average APR for a 30-year mortgage in Arkansas is 6.5%, and for a 15-year mortgage, it is 5.8%.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Arkansas. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).

See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.

Interest rate data was last updated in September 2024.

SEE MORTGAGE CALCULATORS IN NEIGHBORING STATES

How to Use Our Arkansas Mortgage Calculator

MoneyGeek's mortgage calculator in Arkansas can calculate your monthly mortgage payments, determine your mortgage's affordability and provide an understanding of your amortization schedule. This helps you plan your home purchase effectively and manage your finances.

Calculate Your Monthly Mortgage Payment

Understanding your monthly mortgage payment involves several factors, like the home's sale price and your down payment.

1
Home Price
The home price directly influences your monthly mortgage payment in Arkansas. A lower home price in Lafayette County, at a median of $86,640, means lower monthly payments than in Benton County, where the median is $382,170, according to the National Association of Realtors.
2
Down Payment
The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Arkansas's median down payment was $30,000, according to ATTOM data from September 2024.
3
Annual Percentage Rate (APR)
Your annual percentage rate (APR) impacts your monthly mortgage payment, with a lower APR resulting in lower payments. The current mortgage rates in Arkansas change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 5.8%, and for a 30-year fixed mortgage, it's 6.5%.
4
Loan Terms
Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.

SAMPLE MONTHLY PAYMENT CALCULATION IN ARKANSAS

Using the mortgage calculator in Arkansas, you can see that the monthly payment for a 30-year fixed-rate mortgage on a $275,000 house after a 20% down payment is $1,391. This figure does not include additional costs such as HOA fees and property tax.

Choosing a 15-year repayment term for your home loan increases your monthly payment to $1,833 in Arkansas. This adjustment raises your short-term expenses but reduces the total interest paid over the life of the loan by $170,694, presenting a substantial long-term saving.

Determine Your Mortgage's Affordability

Buying a home is one of the biggest expenses you'll encounter, and your mortgage payments will likely consume a large chunk of your monthly income. Understanding how affordable your mortgage is can greatly impact your financial well-being. That's where MoneyGeek's mortgage calculator for affordability comes in. You can quickly gauge what you can afford by inputting your monthly income and other debts, such as car and student loans.

The calculator also reveals your debt-to-income ratio, which is vital for borrowers to understand. This ratio shows how much of your income goes toward debt payments, a crucial consideration when seeking a mortgage. According to Experian, the average debt in Arkansas is $74,770, translating to a monthly debt of $6,231.

See Your Amortization Schedule

Mortgage amortization is the process of paying off a loan over time through regular payments. Key terms are:

Principal: The loan amount you borrow. Understanding this helps you see how much you owe.
Interest: The cost of borrowing the principal. Knowing this shows the total cost of your loan.

You can use our mortgage calculator to estimate the total interest you'll pay over the life of your loan in Arkansas. You can also see when your monthly payments begin to go more toward your principal vs. your interest, which helps you understand your payment allocation over time.

Additional Mortgage Fees in Arkansas

Homebuyers in Arkansas need to consider additional mortgage fees when calculating their monthly payments, as these can impact your budget. For example, mortgage insurance and HOA fees could increase your monthly total. Property taxes and homeowners insurance are other costs to keep in mind.

Homeowners Insurance

Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Arkansas is $4,023 per year.

Property Tax

Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Arkansas's effective property tax rate is 0.64%, ranking 39th in the nation.

HOA Fees

HOA fees are payments to homeowners associations for property management, maintenance and community amenities. These fees are typically paid monthly or annually.

Private Mortgage Insurance

Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.

How Much Is Private Mortgage Insurance in Arkansas?

The average APR for a 30-year fixed loan in Arkansas is 6.5%, while a 15-year fixed loan has an APR of 5.8%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 per month for a 30-year loan. The amount becomes $115 for a 15-year loan.

MoneyGeek's mortgage calculator in Arkansas allows you to see your amortization schedule and determine when you can stop paying for PMI:

1
Calculate your monthly mortgage payment
Input the necessary information, such as the home's price, down payment and mortgage rates in Arkansas. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank but know you'll still have to pay for these. Run the calculator and get your total monthly payment.
2
Calculate for your target equity
You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.
3
Determine the remaining equity required
Your down payment already contributes toward the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.
4
Establish a timeline
In the Amortization tab of the mortgage calculator, move the slider until the principal paid exceeds your remaining equity required — that's the year you can stop paying for PMI.

Private Mortgage Insurance Calculator

Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

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WHEN CAN YOU CANCEL YOUR PMI?

Let's say you put in an 8% down payment for a home in Arkansas priced at $350,000. With an average APR of 6.5% for a 30-year fixed-rate loan, your monthly mortgage payment is $2,035. You need 20% equity to cancel PMI, equivalent to $70,000.

Since your down payment was $28,000 (8% of $350,000), you still need to pay $42,000 to accumulate 20% equity. Assuming that your home's value remains the same over the years and that you consistently pay your mortgage, you can request your lender to cancel your PMI before the end of year 10.

How to Lower Your Monthly Mortgage Payment in Arkansas

Your mortgage is probably the biggest expense you have each month. For a $225,000 loan in Arkansas at 6.5%, you'll pay $1,391 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,355. That $36 difference in monthly payment adds up — over a 30-year fixed-rate mortgage, you'll save $12,950 in total interest.

This example highlights the value of finding ways to lower monthly mortgage payments. Here are some strategies to consider:

Improve your credit score

Your credit score affects your mortgage payment. In Arkansas, if you put in a down payment between 5% and 20% of the home's sale price, the average APR for a 30-year fixed-rate mortgage is 6.8% if your credit score is above 740. However, if your credit score is under 680, the average APR becomes 7.1%. This change in APR makes your monthly mortgage payments go from $1,434 to $1,478.

Save for a bigger down payment

Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Arkansas, putting 8% down makes your APR 7.2%, resulting in a monthly mortgage of $1,717. Increasing your down payment to 25% puts your APR at 6.7% and your monthly mortgage at $1,331.

Choose a longer loan term

A longer loan term affects your monthly mortgage payment. A 15-year fixed-rate mortgage in Arkansas has an APR of 5.8%. A 20% down payment makes your monthly mortgage payment $1,833. Compare this to $1,391, which you'll have to pay each month if you change loan terms to 30 years, even if your APR increases to 6.5%.

Explore homeownership assistance programs

You can find homeowners assistance programs in Arkansas that may help with your mortgage costs. Institutions like the Arkansas Development Finance Authority offer various forms of assistance to eligible homeowners.

FAQ: Mortgage Calculations in Arkansas

Understanding how to use a mortgage calculator can raise questions for potential borrowers, especially in Arkansas's housing market. We've addressed commonly asked questions about mortgage calculators in Arkansas.

How much mortgage can I afford in Arkansas?

Your mortgage affordability in Arkansas depends on your debt-to-income ratio (DTI). Generally, lenders prefer a DTI ratio of 36% or lower.

What is the average mortgage debt in Arkansas?

The average mortgage debt in Arkansas was $158,193 as of 2023, according to Experian.

How much down payment do I need to purchase a house in Arkansas?

Ideally, a 20% down payment is recommended. However, down payment requirements vary: conventional loans typically require 3% to 20%, FHA loans require 3.5% and VA loans and USDA loans often require no down payment.

Do you really need private mortgage insurance in Arkansas?

In Arkansas, PMI costs approximately $115 for a 15-year loan and $117 for a 30-year loan. PMI is generally required if your down payment is less than 20%.

What's the effective tax rate in Arkansas?

Arkansas's effective property tax rate is 0.64%, ranking 39th in the nation.

What is the median home price in Arkansas?

The median home price in Arkansas varies by county. Lafayette County has the lowest median home price at $86,640, while Benton County has the highest at $382,170.

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