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Mortgage rates in Arkansas
Rates that closely align with the national average.
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Mortgage rates during the coronavirus
As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.
The Natural State originates a full range of mortgage rates. Arkansas mortgage rates are expected to fall below the 4% mark and hover around the same low level into 2020.
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How much do Arkansas rates vary by loan?
Average mortgage rates for 30-year mortgages ranged from 4.59% to 4.74% in 2018. Several factors, such as the type of loan product, can affect your mortgage rate. For example, on average, government-insured programs have lower interest rates than conventional loans.
A slight difference in interest rate can mean a big difference in your monthly payment and how much interest you’ll end up paying in the long run. For example, a $135,000 conventional mortgage at the average rate of 4.74% would have an estimated monthly payment of about $703.41, excluding taxes, fees, and other costs specific to your loan.
On the other hand, if you got an FHA loan with a 4.69% rate, your monthly payment could drop to $699.35. Although it’s a difference of only $4.06 a month, it adds up to a savings of $1,461.18 over the lifetime of the loan.
2018 average rates in Arkansas by loan type
| Loan Type | 15-year average rate | 30-year average rate |
|---|---|---|
| Conventional | 4.42% | 4.74% |
| FHA | 4.21% | 4.69% |
| VA | 4.04% | 4.59% |
| USDA | N/A | 4.67% |
Source: ffiec.cfpb.gov
Which way are rates trending in Arkansas?
Although rates may rise slightly, interest rates are expected to stay around the same low levels, averaging below the 4% mark into 2020, according to Greg McBride, Bankrate chief financial analyst.
Historically, Arkansas’s mortgage rates follow the national average. Mortgage buyer Freddie Mac reported that US 30-year mortgage rates dropped to 3.60%, and nationwide housing agencies expect it to stay around that level, averaging 3.70%. Arkansas rates should also follow suit into 2020.
Compare mortgage rates throughout Arkansas
Mortgage rates in Arkansas vary not only from the national average but also from city to city. On top of that, home values vary depending on geographic area. That means even if interest rates are the same between two regions, borrowers may have different monthly mortgage payments. If you’re considering moving to a new area, be mindful of how your mortgage rate may differ.
We crunched data from the Home Mortgage Disclosure Act to provide a snapshot of what you might pay on the average 30-year fixed-rate mortgage in metropolitan areas of Arkansas. Rates and amounts do not account for taxes, fees, PMI or costs specific to your mortgage.
| Metropolitan area | Average mortgage rate | Median loan amount | Estimated monthly cost |
|---|---|---|---|
| Fayetteville-Springdale-Rogers | 4.65% | $175,000 | $902.36 |
| Fort Smith | 4.66% | $135,000 | $696.92 |
| Hot Springs | 4.76% | $135,000 | $705.04 |
| Jonesboro | 4.66% | $145,000 | $748.54 |
| Little Rock-North Little Rock | 4.68% | $95,000 | $491.56 |
| Memphis metropolitan area (Crittenden County, AR) | 4.78% | $145,000 | $759.01 |
| Pine Bluff | 4.90% | $115,000 | $610.34 |
| Texarkana metropolitan area (Miller County, AR) | 4.89% | $135,000 | $715.66 |
How to get the best mortgage rate in Arkansas
Land the best rate on your next mortgage by shopping around and shoring up your credit:
- Compare loan products. Learn about loan programs you might qualify for to narrow the best loan terms for your new home.
- Amp up your borrowing profile. Lenders offer stronger rates to borrowers with good credit. Before applying for a loan, take time to improve your credit score and pay down existing debts.
- Factor in closing costs. On average, Arkansas lenders charge closing costs between 1.21% and 2.43% added to the purchase price of your home. These fees can greatly increase the overall cost of your mortgage.
Historical mortgage interest rates in Arkansas
Bottom line
Although mortgage rates in Arkansas historically align with the national average, individual lenders charge their own rates. Arm yourself with the information you need to make an informed decision by comparing mortgages and lenders.
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