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Mortgage rates in Arkansas
Interest rates on a 30-year $300,000 conventional mortgage start at around 3.500%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.625% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Arkansas home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Arkansas by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
| Credit score | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 620-639 | 4.250% | 4.250% | 4.250% | 4.250% |
| 640-659 | 4.188% | 4.125% | 4.125% | 4.000% |
| 660-679 | 4.000% | 4.000% | 4.000% | 4.000% |
| 680-699 | 3.750% | 3.750% | 3.750% | 3.750% |
| 700-719 | 3.750% | 3.750% | 3.625% | 3.625% |
| 720-739 | 3.625% | 3.625% | 3.500% | 3.500% |
| 740-759 | 3.563% | 3.500% | 3.500% | 3.500% |
| 760-779 | 3.563% | 3.500% | 3.500% | 3.500% |
| 780-799 | 3.563% | 3.500% | 3.500% | 3.500% |
| 800+ | 3.563% | 3.500% | 3.500% | 3.500% |
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your Arkansas home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
| Loan type | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 15-year conventional | 2.750% | 2.625% | 2.625% | 2.625% |
| 30-year conventional | 3.750% | 3.750% | 3.625% | 3.625% |
| 15-year FHA | 3.063% | 2.938% | Not eligible | Not eligible |
| 30-year FHA | 3.500% | 3.563% | Not eligible | Not eligible |
| 15-year VA | 3.250% | 3.000% | 3.000% | 2.875% |
| 30-year VA | 3.625% | 3.625% | 3.500% | 3.500% |
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
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.
Home values in Arkansas are forecast to rise
Despite the pandemic’s effects on the US economy, the demand for homes in Arkansas has remained resilient. According to Zillow, average home prices in Arkansas increased by 11.6% in the 12 months prior to June 2021, and the average home price currently stands at $151,472.
But price growth across the state is uneven. For example, in Hot Springs, prices are expected to jump by 14.3% by June 2022, and in Evansville and Foreman, by around 17% and 15%, respectively. But in some smaller rural towns, prices are actually dropping.
In general, desirable locations with strong population growth, good infrastructure and amenities tend to see positive growth over time. Buying in the right location could lead to your home increasing in value over time. For more information, see what influences a property’s value.
5 fast facts about Arkansas’s real estate market
If you’re looking to settle in Arkansas, here are five considerations:
- The typical home price in Arkansas is $151,472 as of June 2021, which is 48% less than the national average.
- Saline and Pulaski counties are popular with buyers, with homes only staying on the market for an average of 25 and 33 days, respectively.
- The average monthly ownership cost of a home in Arkansas is $1,089 with a mortgage, significantly less than the national average of $1,595.
- Arkansans also enjoy relatively low property taxes, with an average county tax rate of only 0.61%. For a $250,000 home, that’s $1,525 a year.
- 65.5% of Arkansans own their home, which is slightly higher than the average US homeownership rate of 64%.
Bottom line
Mortgage rates in Arkansas vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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