Arkansas Mortgage Calculator
Estimate your monthly mortgage payment in Arkansas based on the state median home price of $195K, a 0.62% property tax rate, and $3K/year homeowners insurance.
Why This Matters in Arkansas
In Arkansas, property taxes average 0.62% of assessed value. On the state median home of $195K, that adds $101/month to your mortgage payment — well below the national average, giving you more purchasing power. Combined with $208/month for homeowners insurance, your non-mortgage housing costs in Arkansas total $309/month before you even account for principal and interest.
Arkansas's median home price of $195K makes it one of the more affordable states to buy in. At this price point, FHA loans with 3.5% down require just $6,825 for a down payment.
What to Expect for a Mortgage Payment in Arkansas
On the median Arkansas home priced at $195K, a buyer putting 10% down at a 6.5% rate would face a principal-and-interest payment of roughly $1,109 per month. Add $101/mo in property taxes and $208/mo for homeowners insurance, and the total PITI comes to approximately $1,418 each month. That median price sits about 44% below the national median of roughly $350K, which directly shapes how much house most Arkansas borrowers can realistically target.
Arkansas's comparatively affordable housing market gives buyers a meaningful advantage. At a $195K median, FHA loans with just 3.5% down require only $7K upfront — well within reach for many first-time buyers. Even conventional loans at 5% down need just $10K. The lower price point also means private mortgage insurance (PMI) costs less in absolute terms, keeping the total monthly payment manageable.
Arkansas homeowners benefit from a notably low property tax rate of just 0.62%, translating to about $1,209 per year on the median home. That is just $101 per month — a fraction of what buyers pay in high-tax states like New Jersey or Illinois. This lower tax burden effectively makes Arkansas housing more affordable than the sticker price alone suggests.
Homeowners insurance in Arkansas averages around $3K per year, which adds $208 to the monthly PITI. This is manageable relative to many other states. To bring the total payment down further, consider the ADFA Down Payment Assistance program, which offers up to $15,000 dpa for qualifying buyers — reducing the down payment barrier and potentially lowering your loan amount.