Loan balance over time
| Total of 360 payments | $452,845 |
| Principal | $172,800 |
| Interest | $223,675 |
| Taxes | $33,690 |
| Insurance | $22,680 |
| HOA fees | $0 |
What these numbers come from
- Median home value
- $215,600
- Median tax bill
- $1,113
- Effective tax rate
- 0.52%
- Rank of 51
- 40th highest
Arkansas taxes property at about 0.52% of value against 0.89% nationally. On a $216,000 home that is $67 a month less than the same house would cost in taxes at the national rate. Rates are set by counties, cities and school districts, so your own bill will differ from the state median — put your actual figure in the property tax field and the payment updates.
Tax and home value figures: U.S. Census Bureau, American Community Survey 2024 1-year estimates. Insurance is estimated at 0.35% of home value per year — there is no comparable public per-state dataset, so treat it as a placeholder and replace it with your own quote. The interest rate is the national Freddie Mac 30-year average of 6.58%; this site does not publish state-level rate quotes.
Monthly cost across Arkansas home prices
20% down, 30-year fixed at 6.58%, with Arkansas property tax of 0.52% and estimated insurance.
| Home price | Loan | P&I | Tax/mo | Full payment |
|---|---|---|---|---|
| $129,000 | $103,200 | $658 | $56 | $751 |
| $172,000 | $137,600 | $877 | $75 | $1,002 |
| $216,000 median | $172,800 | $1,101 | $94 | $1,258 |
| $270,000 | $216,000 | $1,377 | $117 | $1,572 |
| $323,000 | $258,400 | $1,647 | $140 | $1,881 |
The gap between the P&I column and the last one is what a mortgage quote leaves out. In Arkansas taxes alone add $94 a month on a median-priced home.
Amortization schedule
| Date | Principal | Interest | Tax, Ins. & HOA | Balance |
|---|---|---|---|---|
| Aug | $154 | $948 | $157 | $172,646 |
| Sep | $155 | $947 | $157 | $172,492 |
| Oct | $155 | $946 | $157 | $172,336 |
| Nov | $156 | $945 | $157 | $172,180 |
| Dec | $157 | $944 | $157 | $172,023 |
| 2026 | $777 | $4,729 | $783 | $172,023 |
| Jan | $158 | $943 | $157 | $171,864 |
| Feb | $159 | $942 | $157 | $171,706 |
| Mar | $160 | $942 | $157 | $171,546 |
| Apr | $161 | $941 | $157 | $171,385 |
| May | $162 | $940 | $157 | $171,223 |
| Jun | $162 | $939 | $157 | $171,061 |
Refinancing in Arkansas
The arithmetic is the same everywhere: refinancing pays off when the monthly saving clears the closing costs before you sell or refinance again. What differs by state is the cost of getting there — recording fees, transfer and mortgage taxes, and whether an existing tax assessment survives the new loan.
Work the break-even with the refinance calculator, or check this week’s national average rates.
Arkansas home loans in detail
Arkansas Mortgage Overview
The median home value of homes in Arkansas is just $270,000, making it a great place for first-time homebuyers. You don't need a large down payment and can own a home in the 'Natural State' surrounded by incredible wilderness areas and natural springs.
If you're looking to move to the 'Natural State' of Arizona, here are the top ways to get financing:
Arkansas conventional loans
First-time homebuyers with good credit can get the great rates and low costs of a conventional loan. With just a 660 credit score and debt ratio of around 40 percent or less, you can borrow up to 97 percent of the home's value. You'll pay Private Mortgage Insurance but can cancel it once you less than 80 percent of the home's value.
Arkansas FHA loans
If you don't qualify for a conventional loan, the FHA loan is a great option. You need just a 3.5 percent down payment but can qualify with a credit score as low as 580 or even a score of 500 with a 10 percent down payment. FHA loans have more flexible guidelines, making it even easier to buy your first home.
Arkansas VA loans
If you served or are serving in the military, the VA loan is a great way to buy a home with no down payment. Veterans need just a 620 credit score and adequate income to cover your commitments and have enough money left to cover your daily cost of living. VA loans have great rates and low closing costs.
Arkansas USDA loans
If you live in a rural area (or will move to one) and haven't owned a home before (or in the last 3 years), the USDA loan can be a good option. This program is for families with income lower than 115% of the income for the area, and who are buying a home for their primary residence. The USDA program doesn't require a down payment.
First-Time Homebuyer Programs in Arkansas
Arkansas Dream Down Payment
Initiative
The ADDI helps low income families by providing up to 10 percent of the sales price for the down payment. The funds are a second mortgage that's forgivable after five years.
ADFA Down Payment Assistance
Programs
The ADFA DPA provides $10,000 for a down payment and/or closing costs. This is a second mortgage with a low interest rate over a 10-year term.
ADFA Move-Up Loan
The ADFA Move-Up Loan is a conventional, FHA, VA, or USDA loan with a 30-year term and low interest rates making it easier for first-time homebuyers to buy their first home.
Arkansas mortgage FAQ
- How much is property tax on a home in Arkansas?
- Arkansas homeowners pay an effective property tax rate of about 0.52 percent of home value — the 40th highest of the 50 states and DC. On the state's median home value of $215,600 that works out to roughly $1,123 a year, or $94 a month added to the mortgage payment. The figures come from the Census Bureau's American Community Survey 2024 1-year estimates; your own bill depends on the county and city rates where the home sits.
- What is the monthly payment on a median-priced Arkansas home?
- At $216,000 with 20 percent down and the current 6.58 percent national 30-year fixed average, principal and interest come to about $1,101 a month. Adding Arkansas property tax of roughly $94 a month and an estimated $63 of homeowner insurance brings the full payment to around $1,258.
- What loan programs can homebuyers use in Arkansas?
- Arkansas buyers can use conventional loans covering up to 97 percent of the home's value with a 660 credit score, FHA loans with 3.5 percent down and a 580 score or 10 percent down with a 500 score, VA loans with no down payment for veterans with a 620 score, and USDA loans with zero down for rural buyers earning under 115 percent of area income.
- What first-time homebuyer assistance does Arkansas provide?
- The Arkansas Dream Down Payment Initiative provides up to 10 percent of the sales price as a second mortgage that is forgiven after five years. The ADFA Down Payment Assistance program offers a low-interest second mortgage over a 10-year term for down payment and closing costs, and the ADFA Move-Up Loan is a 30-year conventional, FHA, VA, or USDA loan with low rates.
- Is it possible to buy a home in Arkansas with zero down?
- Yes. VA loans let Arkansas veterans buy with no down payment and a 620 credit score, while USDA loans offer zero down to buyers in rural areas whose income is below 115 percent of the area level. First-time buyers can also use the Arkansas Dream Down Payment Initiative, which covers up to 10 percent of the sales price toward the down payment.
Property tax in every state
Effective rate on owner-occupied value, highest bills first in each column.
- Alabama0.38%
- Alaska1.06%
- Arizona0.43%
- California0.71%
- Colorado0.49%
- Connecticut1.66%
- Delaware0.47%
- District of Columbia0.63%
- Florida0.75%
- Georgia0.74%
- Hawaii0.27%
- Idaho0.43%
- Illinois1.92%
- Indiana0.74%
- Iowa1.29%
- Kansas1.25%
- Kentucky0.71%
- Louisiana0.53%
- Maine0.91%
- Maryland0.95%
- Massachusetts1.00%
- Michigan1.18%
- Minnesota1.02%
- Mississippi0.65%
- Missouri0.79%
- Montana0.69%
- Nebraska1.42%
- Nevada0.47%
- New Hampshire1.46%
- New Jersey1.89%
- New Mexico0.63%
- New York1.45%
- North Carolina0.61%
- North Dakota0.96%
- Ohio1.22%
- Oklahoma0.75%
- Oregon0.78%
- Pennsylvania1.16%
- Rhode Island1.07%
- South Carolina0.45%
- South Dakota1.02%
- Tennessee0.45%
- Texas1.31%
- Utah0.49%
- Vermont1.42%
- Virginia0.71%
- Washington0.79%
- West Virginia0.52%
- Wisconsin1.25%
- Wyoming0.57%