Mortgage Payment in Arkansas

Market Overview: Arkansas Housing Affordable

Arkansas ranks as a entry-level / affordable housing market, with a median home price of $210,633. The state's effective property tax rate of 0.60% is lower than the national average of 1.00%, and annual homeowners insurance averaging $3,151 falls above the US median of $2,201.

These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Arkansas. Below we break down a realistic purchase scenario using state-specific data.

🏡 Purchase Example: Buying a $210,633 Home in Arkansas

Using the state's median home price of $210,633, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Arkansas:

Cost Component	Amount
Home Price	$210,633
Down Payment (20%)	$42,127
Loan Amount	$168,506
Estimated Closing Costs (3.5%)	$7,372
Total Cash Needed at Closing	$49,499

Monthly Payment (20% Down)

Item	Monthly
Principal & Interest	$1,065
Property Taxes (0.60%)	$105
Homeowners Insurance	$263
PMI (not needed at 20% down)	$0
Total Monthly Payment	$1,433

Annual income needed (28% DTI): $62,000/yr

PMI Scenario: What If You Put Only 10% Down?

With a 10% down payment ($21,063), you'd have a loan of $189,570 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:

Item	10% Down	20% Down (savings)
Principal & Interest	$1,198	$1,065
Monthly PMI	$111	$0
Total PITI+PMI	$1,677	$1,433

The lower down payment costs you an extra $244/month (P&I + PMI). You would need $72,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.

First-year interest: In year one, $10,897 of your payments go to interest alone. Over the full 30-year term, you'll pay $214,921 in total interest.

💰 State-Specific Cost Notes for Arkansas

Property taxes in Arkansas are 0.60%, meaning about $1,264/year ($105/month) on the median-priced home.

Homeowners insurance in Arkansas is notably expensive — $3,151/year. This is likely due to exposure to severe weather patterns. It adds $263/month to your housing costs.

Closing costs in a entry-level / affordable market like Arkansas typically run 2%–4% of the purchase price — roughly $7,372 on a $210,633 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.

Monthly Payment on a $210,633 Home in Arkansas

With a standard 20% down payment ($168,506 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $1,433.

Monthly Payment Breakdown (PITI)

Component	Monthly Cost	Annual Cost
Principal & Interest	$1,065	$12,780
Property Taxes (0.60% est.)	$105	$1,260
Home Insurance	$263	$3,156
Total Monthly Payment	$1,433	$17,196

Income Required in Arkansas

Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $62,000 to comfortably afford the median-priced home in Arkansas with 20% down at 6.5%.

How Interest Shapes Your Payments

In your first year, approximately $10,897 goes toward interest alone. Over the full 30-year term, you'll pay a total of $214,921 in interest.

Amortization Schedule — First 10 Years

* Full 30-year amortization available in our interactive calculator.

❓ Frequently Asked Questions — Buying a Home in Arkansas

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