Mortgage and Refinance Rates in Arkansas
Use our comparison table to compare refinance and mortgage rates in Arkansas
Today's Rates In Arkansas
Finding the lowest Arkansas mortgage rates will take some research and organization. Home loans in Arkansas can be organized into three general types: home purchase loans, mortgage refinances and home equity loans. Within these general categories, there are many variations and options to choose among.
For that reason, locating and evaluating those options can be a challenge. Start your research by thinking about your financial situation and what you're trying to accomplish. Looking to buy a home? Ask yourself what you can afford and what your financial goals are. Can you manage a higher monthly payment to save on mortgage interest over the loan run? What's your credit score? What sort of down payment can you make? Would you be better off with a conventional mortgage or an FHA loan for your Arkansas home?
Considering a mortgage refinance? How long should your new loan be, given the years remaining on your current loan? Can you refinance into a shorter loan to get a lower rate and pay your mortgage off sooner? What are Arkansas refinance mortgage rates? Or a home equity loan? How much do you need and when? Would a standard home equity loan be best or would the flexibility of a HELOC (home equity line of credit) better suit your purposes?
All this may seem a bit overwhelming. But you can use the resources provided here on MortgageLoan.com to sharpen your mortgage knowledge and put yourself in the position to make the best decision possible. Our collection of mortgage articles, tips and other resources allow you to:
- Check Arkansas mortgage rates
- Compare rates by loan type
- Determine what you can afford
- Understand how amortization works
- Find suitable Arkansas mortgage lenders
Current mortgage rates in Arkansas for some popular loan types are listed at the top of this page. That's a good place to get started – it will show you roughly what the differences are between different types of loans. But remember that those are averages and that mortgage rates can change daily. The rate you get can depend on a variety of factors, including your credit score, down payment, size of the loan and more. So keep that in mind when shopping for home loans in Arkansas.
Home Purchase Loans
Here's a quick rundown on the main types of mortgage loans available in Arkansas for buying a home. Conventional loans,, those backed by Fannie Mae or Freddie Mac, are the most common home loans in Arkansas and are available from nearly all lenders. They offer attractive rates and terms, especially for borrowers with good credit, and allow down payments of as little as 3 percent.
FHA loans are popular first-time homebuyer loans in Arkansas and one of the most common alternatives to conventional loans. Arkansas FHA loan requirements allow down payments of as little as 3 percent and are less stringent on credit scores than conventional loans are. Borrowers with lower credit scores can often get better rates with an Arkansas FHA loan than with a conventional loan, making them an attractive option for them as well.
VA loans are the go-to option for military veterans and eligible active duty service members. In addition to competitive rates, their big attraction is that they allow home loans with no down payment up to fairly generous lending limits.
Jumbo loans are high-value mortgages for loans that exceed the lending limits allowed on conventional mortgages. Expect higher mortgage rates, larger down payments and stricter credit requirements, though lenders often allow trade-offs on these, such as approving a borrower with poor credit if they have a large down payment and are willing to pay a high rate.
You can refinance a mortgage using the same types of home loans in Arkansas that you would use to purchase a home. From the lender's perspective, there's little difference – you're simply replacing one home loan with another, taking out a new mortgage and using it to pay off the old one. The main difference is that your home equity takes the place of the down payment in a purchase loan. Arkansas refinance rates are pretty much the same as rates to purchase a home, although borrowers who refinance tend to have better credit and more equity than first-time home purchasers do, so they can often qualify for better terms.
Refinancing may be able to get you a lower mortgage rate than you're currently paying, or cut several years off your mortgage to pay it off faster and save a substantial amount of interest.
You can also borrow against your home equity through a cash-out refinance, borrowing more than you owe on your existing mortgage and receiving the difference in cash. Finally, if you're facing a tight budget, you may be able to refinance into a longer term loan and reduce your monthly payments that way.
Home equity loans
These are loans that allow you to borrow against the equity you've accumulated in your home, using it as collateral. Because they are secured loans, you can get considerably better rates with an Arkansas home equity loan than you can on other, unsecured loans, like a credit card. These are often used as home improvement loans in Arkansas, but you can use the money for any purpose you wish.
Home equity loans fall into two types: a standard home equity loan and a home equity line of credit or HELOC. With the standard loan, you borrow a single sum of money and repay it; a HELOC gives you a line of credit that you can borrow against as you wish, and usually don't have to begin repaying the principle immediately. They're kind of like a credit card secured by your home equity. HELOCs are often a good choice for people seeking financial flexibility or who need to borrow occasional amounts over a period of time, such as for educational expenses or perhaps a home improvement project.
Fixed vs. adjustable rates
Depending on the type of home loan you're seeking, there are two main types of Arkansas mortgage rates to choose from: fixed and adjustable. Fixed-rate mortgages (FRMs) are stable and low-risk, because the interest rate and monthly payment never change. These are usually set up as 30-year loans, but are also available in shorter terms as well, with lower rates.
Adjustable-rate mortgages (ARMs) start out with lower rates than FRMs do, but are subject to rate increases over time. ARMs often have a fixed rate for the first few years, which provides some predictability, before they start to adjust. These often have names like 5/1, 7/1 or 10/2 ARMs, with the first number indicating the number of years before the rate starts to adjust and the second how often the rate adjusts from then on, in years.
Comparison shopping is the best way to locate a competitively priced Arkansas mortgage. Here are the steps:
- Review and compare Arkansas lender rates
- Determine how much loan you can afford
- Request rate quotes from multiple lenders – preferably three or more
- Compare lender quotes
- Choose a lender and submit your loan application
Review your quotes carefully, particularly if one has a much lower interest rate than the others. This could mean that you'll need to pay points up front, or that the mortgage has a riskier structure. Also, don't be surprised if your quoted rates differ from advertised rates; advertised rates are given only to the most qualified borrowers. If you have bad credit, it might be helpful to review lender rates by credit profile. You won't receive a written statement of terms until after you submit a loan application.