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Our Arkansas jumbo loan calculator is designed for anyone navigating the world of high-value property financing, whether you’re a first-time homebuyer or a seasoned investor. This guide will walk you through the key components that define a jumbo loan, demonstrate how to use the jumbo loan calculator effectively, and provide practical tips on strategies for potentially reducing your monthly payments.
Key Points
Key Points
• An Arkansas jumbo loan calculator helps estimate monthly payments, including principal, interest, and property taxes.
• To use the jumbo loan calculator, input the home price, down payment, loan term, interest rate, and property tax rate for reliable estimates.
• Jumbo loans exceed conforming loan limits. In Arkansas, the jumbo loan limit for a single-family property is $806,500.
• Stricter qualification criteria apply to jumbo loans, such as higher credit scores and significant cash reserves.
• Factor in the cost of living in Arkansas, which can affect your overall budget and mortgage affordability.
Arkansas Jumbo Loan Calculator
Calculator Definitions
• Jumbo loan: A jumbo loan is a specialized mortgage for amounts exceeding the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In Arkansas, the 2025 conforming loan limit for a single-family home is $806,500.
• Home price: The home price is the agreed-upon purchase price between the buyer and seller. It directly influences your monthly mortgage payments, total interest paid, and overall long-term costs.
• Down payment: The down payment is the initial sum contributed by the homebuyer, typically a percentage of the home price. Jumbo mortgage loans often require a minimum of 10% down payment.
• Loan term: The loan term is the duration over which you repay the mortgage, commonly 15 or 30 years. A longer term reduces monthly payments but increases total interest paid. A shorter term increases monthly payments but decreases total interest.
• Interest rate: The interest rate is the cost of borrowing, expressed as a percentage of the loan amount. Interest rates vary based on your credit score, market trends, and the type of mortgage loan. A lower rate reduces monthly payments and total interest paid.
• Annual property tax: Annual property tax is levied by local governments based on the assessed value of the property. It is typically a percentage of the property’s assessed value.
How to Use the Arkansas Jumbo Loan Calculator
To use the Arkansas jumbo loan calculator, input the home price, down payment, loan term, interest rate, and annual property tax rate to estimate your monthly payments, total interest, and overall mortgage cost. Here is a step-by-step guide on using the calculator.
Step 1: Enter Your Home Price
Type in the home price listed on your contract. This ensures accurate estimates of your monthly payments and total mortgage costs.
Step 2: Add a Down Payment Amount
Specify your down payment amount. Jumbo loans typically require at least 10% of the purchase price. A higher down payment can lead to better loan terms and lower monthly payments. A down payment calculator can help you decide on your number.
Step 3: Choose a Loan Term
Select a loan term that aligns with your financial goals. Common terms are 15 and 30 years. A 30-year term offers lower monthly payments, while a 15-year term reduces total interest paid.
Step 4: Enter an Interest Rate
Input your anticipated interest rate to the second or third decimal point. A lower rate can significantly reduce your monthly payments and total interest paid.
Step 5: Enter Your Annual Property Tax
Enter your annual property tax rate as a percentage. In Arkansas, the effective property tax rate is 0.59%. This helps estimate your total monthly mortgage payment accurately.
What Are Jumbo Loans and Conforming Loan Limits?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In Arkansas, the conforming loan limit for a single-family home is $806,500. That means for loan amounts above this threshold, a jumbo loan is necessary.
When comparing jumbo loans vs. conventional loans, jumbo loans often come with stricter qualification criteria, such as a minimum credit score of 700 and significant cash reserves. Lenders typically require a down payment of 10% or more.
Jumbo loans provide access to more capital and flexible underwriting options, making it easier to finance high-value properties. Despite the perception of higher risk, jumbo loans can offer competitive interest rates to borrowers with strong financial profiles.
Using a jumbo loan mortgage calculator offers several advantages. It helps you budget effectively by providing a clear estimate of your monthly mortgage payments, which include principal, interest, and property taxes.
The calculator can also help you avoid surprises by showing how small changes in interest rates and loan terms can significantly affect your payments. It also shows you how down payments affect your loan, with higher down payments lowering both the loan amount and the monthly payment.
By using a jumbo mortgage payment calculator, you can set realistic savings goals, plan your budget effectively, and ensure that your home purchase is financially feasible.
How to Use the Jumbo Loan Calculator to Compare Scenarios
Use the jumbo loan calculator to compare different loan scenarios and find the best fit for your financial goals. Here’s what you can do:
• Adjust the home price to see how it affects affordability.
• Change the down payment amount to see the impact on monthly payments.
• Compare different loan terms to understand the trade-offs between monthly payments and total interest paid.
• Experiment with different interest rates to gauge financial strain.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Deciding How Much House You Can Afford in Arkansas
Home prices in Arkansas vary widely, and lenders suggest that mortgage payments should not exceed 28% of your gross monthly income. For a $1 million home, you would need an annual income of around $250,000, with a 10% down payment and a 30-year mortgage at 6.75%. This results in a monthly mortgage payment of approximately $5,837 before property taxes and insurance.
Lenders also recommend total debt (including your mortgage) doesn’t exceed 36% of your gross monthly income. In the example above, if your debts exceed about $1,600 a month — think about student loans, credit cards, and car payments — the income needed for a $900,000 mortgage would be higher.
Going through the mortgage preapproval process can help you gauge affordability — though only you can say what a comfortable budget is, based on your assets, lifestyle, and financial goals.
The main components of a jumbo loan payment are the principal amount and the interest charged on that principal. The Arkansas jumbo loan calculator also factors in the property tax amount, which is typically included in your total monthly payment.
Other financial obligations that may be rolled into your mortgage bill are homeowners insurance and homeowners association (HOA) dues. Understanding these components helps you get a more accurate picture of your total commitment, ensuring you are well-prepared for the financial responsibilities of homeownership.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Cost of Living in Arkansas
The cost of living in your area will significantly affect how much you can afford to spend on a home. Higher cost of living areas typically have higher average home prices, but they also come with increased costs for utilities, home maintenance, transportation, and other necessities. While you might think you can handle a higher mortgage payment, other expenses can also contribute to financial strain.
Fortunately, the cost of living index in Arkansas is 89.6, which is 10.4% less than the national average. Housing is 23.2% lower, utilities are 7.8% lower, and health care is 14.6% lower. Identifying the best affordable places in Arkansas can help you find a home that fits your budget without compromising your quality of life.
Tips on Reducing Your Jumbo Loan Payment
Reducing your jumbo loan payment can make homeownership more manageable. Here are some strategies to consider:
• Increase your down payment to reduce the loan amount and lower monthly payments.
• Shop for a lower interest rate to save on interest over the life of the loan.
• Consider an adjustable-rate mortgage (ARM) for lower initial payments.
• Make a lump sum payment to recast your mortgage and reduce monthly payments.
• Explore loan modification options if you face financial hardship.
• Refinance your mortgage to a longer loan term to lower monthly payments. Keep in mind that a longer term will increase the amount you pay in interest overall.
• Consider a different lender for more competitive rates and terms.
The Takeaway
When considering a high-value property in Arkansas, an Arkansas jumbo loan calculator is an invaluable tool for financial planning. It helps estimate your monthly mortgage payment, total interest paid, and overall costs. By inputting the home price, down payment amount, interest rate, loan term, and property tax rate, you can get a detailed breakdown of your potential financial obligations.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
In Arkansas, a jumbo loan exceeds the conforming loan limits set by the Federal Housing Finance Agency. For 2025, the conforming loan limit for a single-family home is $806,500. Any mortgage over that amount requires a jumbo loan.
Is $900,000 a jumbo loan?
Yes, a $900,000 mortgage is generally a jumbo loan in most areas of the U.S., including Arkansas. The conforming loan limit for 2025 is $806,500. Higher limits apply in certain areas. Use a jumbo loan calculator to understand the financial implications.
Do you need 20% for a jumbo loan?
While a 20% down payment is ideal, many lenders accept a minimum of 10%. A higher down payment can lead to better loan terms and lower monthly payments.
How much are closing costs on a jumbo loan?
Closing costs on a jumbo loan typically range from 2% to 5% of the loan amount. For a $1 million jumbo loan, expect to pay between $20,000 and $50,000. That covers the cost of appraisals, title searches, loan origination fees, attorney fees, and more. Your lender will provide you with an itemized list before your closing.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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