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Arkansas vs Colorado:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Colorado. Updated for 2026.

MetricArkansasColorado
Median Home Price$195K$520K
Property Tax Rate0.62%0.51%
Avg Closing Costs$3K$7K
Closing Cost %1.5%1.4%
Transfer Tax0.33%0.01%
Homeowners Insurance$2,500/yr$3,200/yr
First-Time Buyer Program
ADFA Down Payment Assistance
Up to $15,000 DPA
CHFA Down Payment Assistance
Up to $25,000 second mortgage
Verdict

Arkansas and Colorado are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Arkansas
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$101
Monthly Insurance$208
Monthly PMI$73
Total PITI$1,491/mo
Annual property tax: $1,209
Colorado
Home Price$520,000
Down Payment (10%)$52,000
Loan Amount$468,000
Monthly P&I$2,958
Monthly Property Tax$221
Monthly Insurance$267
Monthly PMI$195
Total PITI$3,641/mo
Annual property tax: $2,652

Buying in Arkansas saves you approximately $2,150/month ($25,800/year) compared to Colorado, based on median home prices with identical loan terms.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Arkansas cost 63% less than in Colorado — that's a difference of $325K on the median home. For buyers relocating from Colorado to Arkansas, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Colorado home could fund a much larger down payment in Arkansas, potentially eliminating PMI and reducing your monthly payment dramatically.

Property tax rates are similar in both states (Arkansas: 0.62%, Colorado: 0.51%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.

Insurance costs favor Arkansas at $2,500/year versus $3,200/year in Colorado, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Closing costs are a one-time but significant expense. Colorado averages $7K in closing costs (1.4% of purchase price) while Arkansas averages $3K (1.5%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while Colorado's CHFA Down Payment Assistance offers Up to $25,000 second mortgage. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Arkansas homes cost $325K less than Colorado on average. That translates to roughly $2,150 less per month in total housing costs if you choose Arkansas. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

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