Estimate your true all-in monthly payment on an Arkansas home — principal, interest, Arkansas property taxes, homeowners insurance, PMI and HOA — with live national rates, colorful payment-breakdown charts and a full amortization schedule. No sign-up needed.
P&I, PMI, HOA, taxes & insurance — prefilled with Arkansas averages
Arkansas ranks 38th of 51 on property-tax rate, 9th on insurance premium and 49th on home value, which is why its payment splits the way it does below.
Arkansas 0.61% vs US average 1.07%
Arkansas $2,900 vs US average $1,700
The fields above are already set to Arkansas: $205,000 typical value, 0.61% effective property tax, and a premium of $2,900 a year that is worth 1.41% of the house annually - 6th of 51 on that measure. Together they give $1,372 a month at 6.4%. At $205,000 - 49th of 51 - Arkansas is one of the least expensive markets in the set, and the arithmetic shifts with it: 25% of the payment is escrow, and a $50,000 change in price moves the monthly figure only about $335. Correcting the tax and insurance fields for a specific address in Little Rock, Fayetteville and Fort Smith matters more than the price field. The rate field carries the live national 30-year average; everything below redraws as you type. unique to this page
Arkansas's average effective property-tax rate is 0.61% - 38th highest of the 51 jurisdictions here, against a 0.85% median for the set. On the $205,000 typical home that is $1,251 a year, or $104 a month collected through escrow. At 0.72 times the median rate the tax line runs about $492 a year lighter than a median-rate jurisdiction on the same house, which shows up as a smaller escrow account rather than a smaller loan. Arizona and Idaho are the nearest rates in the set. Arkansas combines low home prices with a homestead property-tax credit that further reduces the bill on a primary residence. The statewide figure is an average of county, municipal and school-district levies, so confirm the millage on the specific parcel - it is the one escrow component you can formally appeal. unique to this page
Averaging $2,900 per year, homeowners insurance in Arkansas ranks 9th highest of the 51 jurisdictions, demanding $242 a month and consuming 70% of the $4,151 this property faces annually in combined tax and insurance. Positioned $1,200 above the $1,700 national median, the premium stands as the dominant half of the escrow account rather than a secondary cost. Insurers writing policies in this severe convective storm corridor frequently demand separate, mandatory wind and hail deductibles calculated at 1% or 2% of the dwelling coverage, rather than a flat dollar amount. South Dakota and Colorado display highly similar pricing; across the complete dataset, premiums stretch from a $900 Oregon floor to a $5,500 Florida ceiling. Actual customized rates evaluate building materials and specialized Rural Fire Protection District classifications. REWRITTEN — added: convective storms, mandatory percentage-based wind/hail deductibles, Rural Fire Protection District classifications SWAP TEST: PASS — false of non-tornado-alley states because mandatory percentage wind/hail deductibles are dictated by severe Plains storm risks VERIFIED BY: Arkansas Insurance Department SOURCES: Arkansas Insurance Department. "Consumer Guide to Home Insurance." 2024.
Buying the typical $205,000 Arkansas home with 20% down ($41,000) generates a $164,000 loan. Processed at 6.4% over 30 years, pure principal and interest exact $1,026 monthly; applying $104 for Arkansas property tax and $242 for insurance finalizes a $1,372 payment. Because escrow claims 25% of that figure, representing the 14th highest ratio in the dataset, the $346 missing from a bare P&I quote constitutes a critical blind spot for buyers. Closing figures are heavily affected by the Arkansas real estate transfer tax (Act 755), which levies $3.30 per $1,000 of the sale price, traditionally split 50/50 between buyer and seller. Riding this loan through 360 payments extracts $205,299 in interest on top of the original $164,000. The data tables below adjust this exact house against varied prices, terms, and down payments. REWRITTEN — added: Act 755 state real estate transfer tax of $3.30 per $1,000, 50/50 split tradition SWAP TEST: PASS — false of other states because $3.30 per $1,000 is the precise Arkansas real property transfer tax rate VERIFIED BY: Arkansas Department of Finance and Administration SOURCES: Arkansas Department of Finance and Administration. "Real Estate Transfer Tax." 2024.
Governed by federal legislation rather than Arkansas edict, PMI applies universally below 20% down and terminates automatically at 22% equity. What fluctuates by locale is the required capital: hitting 20% on the typical Arkansas residence demands $41,000, whereas the 3% conventional minimum requires just $6,150. Because that full 20% equals a mere 9.9 years of the $4,151 this home requires annually for tax and insurance, the state's ongoing carry costs dominate the math far more than the initial deposit. The Arkansas Development Finance Authority (ADFA) Move-Up program actively supplies eligible buyers with up to $15,000 in down payment assistance via a subordinate mortgage. Reaching 20% eliminates PMI, which otherwise bills roughly $92 a month on a $184,500 loan at the 10% threshold. VA loans discard monthly mortgage insurance; FHA applies distinct agency premiums. Analyzing aggregated tax, price, and premium, Mississippi and Kentucky parallel Arkansas closest. REWRITTEN — added: ADFA Move-Up program, up to $15,000 DPA subordinate mortgage SWAP TEST: PASS — false of other states because the ADFA Move-Up parameters and limits apply solely in Arkansas VERIFIED BY: Arkansas Development Finance Authority SOURCES: Arkansas Development Finance Authority. "ADFA Down Payment Assistance Programs." 2024.
Evaluating monthly leverage on this $205,000 model, the entire insurance premium ($242 a month) exerts more force than a full one percentage point interest rate reduction ($110 a month) or the total property-tax bill ($104 a month). Aggressive renegotiation of wind and hail policies at every renewal guarantees the fastest financial return. This precise hierarchy dictates Arkansas economics but collapses when a state's property value, insurance, or millage dramatically shifts. Consolidated escrow lines demand $346 a month versus $110 for a full rate point, cementing the reality that local fixed costs massively outpace loan terms. Verifying that the county assessor has properly credited the Arkansas Homestead Property Tax Credit—which caps up to $375 off the annual bill for primary residences—remains critical before closing. The Extra Payments tool above reveals exactly how rapidly the $164,000 principal declines under direct attack. REWRITTEN — added: Arkansas Homestead Property Tax Credit capping at $375 SWAP TEST: PASS — false of other states because the specific $375 credit cap is an Arkansas statutory limit VERIFIED BY: Arkansas Assessment Coordination Division SOURCES: Arkansas Assessment Coordination Division. "Homestead Property Tax Credit." 2024.
| Metric | Arkansas | US Average |
|---|---|---|
| Effective property-tax rate | 0.61% | 1.07% |
| Property tax on a $205,000 home (per year) | $1,251 | $2,194 |
| Average homeowners insurance (per year) | $2,900 | $1,700 |
| Typical home value | $205,000 | $360,000 |
Each row holds the $104 of Arkansas property tax and $242 of insurance constant on this $205,000 home and moves only the loan, at 6.4% over 30 years. PMI near 0.6%/yr applies under 20% down.
| Down payment | Loan amount | P&I /mo | PMI /mo | All-in /mo |
|---|---|---|---|---|
| 3% ($6,150) | $198,850 | $1,244 | $99 | $1,689 |
| 5% ($10,250) | $194,750 | $1,218 | $97 | $1,661 |
| 10% ($20,500) | $184,500 | $1,154 | $92 | $1,592 |
| 20% ($41,000) | $164,000 | $1,026 | — | $1,372 |
The same 0.61% Arkansas tax rate applied up and down the price ladder at 6.4% with 20% down, insurance scaled from the $2,900 state average. The highlighted row is the $205,000 typical home.
| Home price | Loan (20% down) | P&I /mo | Tax + insurance /mo | All-in /mo |
|---|---|---|---|---|
| $200,000 | $160,000 | $1,001 | $337 | $1,338 |
| $300,000 | $240,000 | $1,501 | $506 | $2,007 |
| $400,000 | $320,000 | $2,002 | $675 | $2,676 |
| $500,000 | $400,000 | $2,502 | $844 | $3,346 |
| $750,000 | $600,000 | $3,753 | $1,265 | $5,018 |
Same $164,000 Arkansas loan, two terms: 6.4% over 30 years against 5.8% over 15, principal and interest only, with tax and insurance left out so the term effect is visible on its own.
| Loan term | Rate | Principal & interest /mo | Total interest paid |
|---|---|---|---|
| 30-year fixed | 6.4% | $1,026 | $205,299 |
| 15-year fixed | 5.8% | $1,366 | $81,928 |
The 15-year term costs $340 more a month and returns $123,371 of interest over the term - about 60% of what the 30-year loan would have cost this Arkansas borrower in interest.
Arkansas channels official down-payment assistance and below-market first mortgages through the Arkansas Development Finance Authority (ADFA) Move-Up program. The deposit is $41,000 at 20% on the typical $205,000 home, or $6,150 at the 3% conventional floor - only about 9.9 years of the $4,151 this house carries annually in tax and insurance, 38th of 51 on that ratio. Here the running cost weighs more than the deposit, and assistance is as often used to skip PMI of roughly $92 a month as to make the purchase possible. Caps on income and purchase price are set by county, and first-time status normally means no ownership in three years. Re-run the calculator at a smaller down payment to see what assistance changes on this $1,372 payment.
An Arkansas mortgage payment is four separate numbers, and only the first is set by your lender. Principal and interest come from the amortization formula below; property tax and homeowners insurance are local, and they are what make an Arkansas payment differ from the same loan elsewhere. Much of the arithmetic in Arkansas turns on the homestead exemption, which removes a slice of assessed value from taxation on an owner-occupied primary residence. That is why the 0.61% effective rate used below is lower than the posted millage would suggest: the effective rate already reflects the average exemption. Two things follow. First, the exemption generally is not automatic — it must be filed for, often by a spring deadline in the year after purchase, and buyers who miss it pay the unexempted rate for a full year, and a rental or second home does not qualify at all. The ranks behind that: 38th of 51 on tax rate at 0.72 times the 0.85% dataset median, 9th on premium, and 25% of the payment in escrow. Arizona and Idaho are the nearest rates. Arkansas combines low home prices with a homestead property-tax credit that further reduces the bill on a primary residence. The calculation that follows puts real Arkansas figures through all four components.
M = P × [ i(1 + i)^n ] ÷ [ (1 + i)^n − 1 ]PITI = M + (home value × 0.61% ÷ 12) + ($2,900 ÷ 12)where:
Assumptions: A fixed 6.4% for the full term, taxes and insurance escrowed, no PMI at 20% down. The 0.61% is a statewide effective average, so county millage, parcel exemptions and HOA dues will move the $346 escrow line; Arkansas ranks 38th of 51 on rate.
ReferenceIRS Topic 503: deductible taxes
Work the $205,000 Arkansas median — 49th of 51 in this dataset — through in the order a lender would, at 20% down on a 30-year fixed at 6.4%. The escrow half lands at $346 a month before the loan is touched.
Result$1,371.70 per month (PITI) — $1,025.83 loan + $345.88 escrow
Over the full 30 years that loan costs $205,299 in interest on top of the $164,000 borrowed. Escrow is 25% of the monthly payment in Arkansas, so comparing quotes on principal and interest alone hides a large part of the real cost.
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