Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Arkansas
Arkansas ranks among the most affordable states for homebuyers in the country. With an average home price of just $175,000 and a property tax rate of 0.57%, monthly housing costs here are exceptionally low compared to the national average. Little Rock, the state capital, is the largest and most active market, with growing neighborhoods attracting both young professionals and families.
Beyond Little Rock, cities like Fayetteville, Bentonville, and Springdale in the northwest corner of the state have experienced significant growth, driven in part by the headquarters of Walmart and a thriving tech and startup ecosystem. Home prices in these northwest Arkansas markets have risen but still remain affordable relative to major metros elsewhere in the country.
The Arkansas Development Finance Authority offers strong first-time buyer programs, including up to $15,000 in forgivable down payment assistance. Combined with the state's low property taxes and homestead credit, Arkansas is one of the best value propositions for new homeowners in the South.
Most affordable markets: Jonesboro, Fort Smith, Pine Bluff
Frequently Asked Questions
Arkansas has a low effective property tax rate of approximately 0.57%. On a $175,000 home, you'd pay roughly $998 per year in property taxes. Arkansas also offers a homestead property tax credit of up to $375 for owner-occupied primary residences, further reducing the tax burden.
Arkansas Development Finance Authority (ADFA) offers the Move-Up program with competitive interest rates and the Down Payment Assistance (DPA) program providing up to $15,000 as a 10-year forgivable loan. The ADFA also offers the MCC (Mortgage Credit Certificate) program, which provides a federal tax credit of up to 35% of mortgage interest paid annually.
With Arkansas's average home price of $175,000, a 20% conventional down payment is $35,000. FHA loans require 3.5% ($6,125). ADFA's DPA program can provide up to $15,000 toward down payment and closing costs for qualifying first-time buyers, making homeownership very accessible.
Closing costs in Arkansas typically range from 2–3% of the loan amount. On a $175,000 home, expect approximately $3,500–$5,250 in closing costs. Arkansas does not impose a state mortgage recording tax, keeping closing costs relatively manageable.