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Buying a home in Arkansas
According to Zillow, the typical home value in Arkansas is lower than the US national typical value of $356,026. The typical home value in Arkansas is $180,819, and home values have increased 16.3% over the past year.
Historic mortgage rates for Arkansas
By looking at the average mortgage rates in Arkansas since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic Arkansas mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
Mortgage calculator
Use our free mortgage calculator to see how today’s Arkansas mortgage rates will impact your monthly payments.
Click on “More details” to understand how various rates could affect your long-term finances.
Arkansas first-time homebuyer programs
The Arkansas Development Finance Authority has a few programs to help novice homebuyers save money:
ADFA Move-Up Loan: Get an affordable 30-year conventional mortgage, and combine this mortgage with other ADFA financial assistance.Mortgage Credit Certificate Program: Claim a tax credit for up to 50% of the interest you pay on the home, up to $2,000 per year.Down Payment Assistance Program: Get a loan for up to $10,000, and put the money toward your down payment or closing costs. You’ll pay back the loan over 10 years.Arkansas Dream Down Payment Initiative: If you’re a low-income borrower, you can get a loan for up to 10% (max $10,000) of your mortgage amount. There are no monthly payments, and the ADFA may forgive the loan after five years.Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan. United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in Arkansas
Rates are at historic lows right now, so it could be worth it to switch your current mortgage for one with a lower rate — especially if the new rate would be significantly lower.
You don’t necessarily need to refinance with the same lender you used for your initial mortgage. A different company may offer you a better deal this time around. Shop around for a lender who will offer the lowest rate based on your credit score and debt-to-income ratio, and the one that charges relatively low fees.
How to get a low interest rate
Here are some tips for landing a good interest rate on your mortgage:
Save for a down payment. With a conventional loan, you may be able to put down as little as 3%. But the higher your down payment, the lower your rate will likely be. Rates should stay low for a while, so you probably have time to save more.Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But the higher your score, the better your rate will be. To improve your credit score, be sure to pay all your bills on time. You can also pay down debts or let your credit age.Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less, but an even lower DTI can result in a better rate. To improve your DTI, pay down debts or consider opportunities to increase your income.Choose a federally backed mortgage. If you’re eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
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