Arkansas Mortgage Calculator

By SoFi Editors | Updated September 15, 2025

A mortgage calculator can be a tremendously useful tool when you’re exploring a home purchase in Arkansas. Particularly if you’re a first-time homebuyer and have never had a mortgage before, seeing how different home prices, interest rates, and loan terms affect monthly payments and your overall loan cost can help you create a budget for homeowning happiness.

Key Points

•  Mortgage calculators help determine affordability and aid homebuyers in managing their finances.

•  Mortgage payments in Arkansas include principal, interest, taxes, and insurance.

•  Arkansas has a lower cost of living compared to the national average.

•  Programs are available to assist first-time homebuyers with down payments and closing costs.

•  Tips to reduce mortgage payments include exploring a recast or refinance; consider appealing property taxes.


Arkansas Mortgage Calculator

Calculator Definitions

• Home price: The home price is the purchase price you and the home seller have agreed upon. This price may differ from the initial listing price and your first offer. It helps determine your down payment and monthly mortgage payments.

• Down payment: This is a buyer’s initial payment for a property. It can be from 3% to 20% of the home price. A larger down payment can lower your monthly mortgage payments and eliminate the need for private mortgage insurance (PMI). Down payment assistance programs can help cover this cost.

• Loan term: The loan term is the length of time you have to repay the mortgage, usually between 10 and 30 years. A shorter term means higher monthly payments but less interest paid over the life of the loan. A longer term offers lower monthly payments but increases total interest costs.

• Interest rate: The interest rate is the cost of borrowing funds, expressed as a percentage of the total loan amount. It varies based on borrower qualifications, market trends, and the type of mortgage loan.

• Annual property tax: Local governments charge property tax based on your land and buildings within guidelines set by your state. You can find your property tax rate by searching online for the town, county, or ZIP code where the property is located and “effective property tax rate.”

• Monthly payment: The monthly payment includes the loan’s principal and interest. Some lenders also include property taxes. Homeowners insurance and homeowners association fees may also be included in payments by some lenders.

• Total interest paid: Total interest paid is the entire amount of interest you will pay over the loan’s term. It is influenced by the loan amount, the interest rate you obtain, and the loan term you choose. A larger down payment, lower interest rate, and shorter loan term can reduce total interest paid.

• Total loan cost: Total loan cost is the all-inclusive amount you will pay for the loan, including the principal that you repay and the interest.

How to Use the Arkansas Mortgage Calculator

Step 1: Enter Your Home Price

Type in the purchase price you’ve negotiated with the seller. This figure will help the calculator accurately estimate your monthly mortgage payment and total interest cost.

Step 2: Select a Down Payment Amount

Choose the percent of the home price you will pay upfront. A larger down payment can reduce your monthly mortgage payment and total interest paid. A down payment calculator can help you decide on your number.

Step 3: Choose a Loan Term

Select the duration to repay the mortgage, from 10 to 30 years. A longer home loan term means lower monthly payments, but more interest paid over the life of the loan.

Step 4: Enter an Interest Rate

Input your estimated interest rate to the second or third decimal point. A lower rate can reduce monthly payments and total interest paid. If you are purchasing a very pricey property, look specifically at rates that might be available for a jumbo loan.

Step 5: Add Your Annual Property Tax Rate

Enter the home’s property tax rate as a percentage. For example, input 1.2 if the rate is 1.2%.

Benefits of Using a Mortgage Payment Calculator

A mortgage calculator helps you determine how much house you can afford, which is particularly helpful if you’re buying your first home. You’ll be able to see an estimate of your monthly payments based on loan amount, interest rate, and term. You can compare different loan amounts and interest rates to see how big a bite they might take out of your budget. If the type of mortgage loan you choose has a variable interest rate, you can estimate your costs using this calculator, but the estimate will be less precise due to the fluctuations of a variable rate.

Recommended: The Cost of Living in the U.S.

Deciding How Much House You Can Afford in Arkansas

In Arkansas, the median home sale price in late 2025 is around $273,000. Lenders typically prefer a mortgage payment of no more than 28% of gross monthly income. The mortgage payment in this 28% equation includes your principal, interest, taxes, and homeowner’s insurance, or PITI.

To afford a $273,000 home following this formula, an annual income of roughly $79,000 would be needed, assuming a 20% down payment ($54,600) with a 7.00% 30-year mortgage. The estimated monthly mortgage payment would be $1,828. This assumes you don’t have other significant debts burdening your budget, however. If you are paying for a car, or a student loan, or carrying credit card debt, you may need more earnings to afford this mortgage.

Use a home affordability calculator for an estimate of how much house you can afford based on your income.

Going through the mortgage preapproval process with a lender can also give you a clear picture of what loan size and type you can afford.

Components of a Mortgage Payment

The main components of a mortgage payment are the principal amount borrowed and the interest charged. This Arkansas home mortgage calculator also factors in property taxes, which are often included in the monthly payments. Your payment could also include private mortgage insurance (PMI), home insurance, or homeowners association (HOA) fees, depending on your situation.

If you’re thinking about a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums.

A VA mortgage calculator is helpful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

Cost of Living in Arkansas

The cost of living in your area affects how much you can afford. Higher-cost areas tend to have higher average home prices and above-normal costs for utilities, maintenance, transportation, or all of the above. So if you’re thinking of buying in one of the best affordable places in the U.S., you’re in luck. Understanding the local cost of living helps you make an informed decision about your home purchase and budgeting.

This chart shows how the cost of living in major metropolitan areas in Arkansas compares to the national average of 100 on the Cost of Living Index compiled by C2ER, a nonprofit economic-development organization. Fortunately, Arkansas has a relatively low cost of living.

Arkansas Cities’ Cost-of-Living Stats
Conway 83.9
Fayetteville 94.0
Jonesboro 83.3
Little Rock-North Little Rock 93.4

Run the numbers on your home loan.

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.

Tips on Reducing Your Mortgage Payment

There are ways you can minimize your mortgage payment, both before your purchase and after you have a home loan.

•   Explore down payment assistance programs. Some of these are specific to buyers who qualify as a first-time homebuyer. The good news is that in many cases, you can qualify even if you have owned a home before, as long as you haven’t owned a primary residence in the past three years.

•   Appeal your property taxes if they seem too high. Tread carefully here, however, as inviting more scrutiny of your home value can sometimes result in a tax increase.

•   Reach out to your lender to ensure that PMI is dropped from your monthly payment once you have reached 20% home equity.

•   Undertake a mortgage refinance if rates drop significantly after your purchase.

•   Recast your mortgage by making a lump sum payment toward the principal and asking your lender to recalculate your payments.

•   Modify your loan type or extend the term. Remember that a longer term generally means less interest on a monthly basis, but more interest paid over the life of the loan.

Recommended: Average Monthly Expenses for One Person

Arkansas First-Time Homebuyer Assistance Programs

If you’re considering buying your first home or haven’t owned a primary residence in three years, there’s assistance available. Down payment assistance programs provide financial aid for the down payment, closing costs, or both, making homeownership more accessible. The Arkansas Development Finance Authority offers several programs for first-time homebuyers in Arkansas. Some programs are restricted to first-timers and those with limited incomes, but others are more widely available based on a home’s location or purchase price.

The Takeaway

Using an Arkansas mortgage calculator is a smart first step in understanding the financial commitment of a home loan. By considering factors like your down payment, loan term, and interest rate, the calculator can help you make an informed decision about how much house you can afford. Whether you’re a first-time homebuyer or a seasoned homeowner, the calculator provides valuable insights to ensure you are well-prepared for your home purchase.

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.

SoFi Mortgages: simple, smart, and so affordable.


View your rate

FAQ

What is a mortgage payment?

A mortgage payment is typically a monthly payment and includes principal and interest. It often includes a charge for property taxes and homeowners insurance, too. If a borrower is required to have mortgage insurance, that may also be included. The principal reduces the outstanding loan balance, while interest is the cost of borrowing. Including property taxes and insurance in the monthly bill helps ensure that these expenses are covered throughout the loan term (and that the home remains insured).

How does my credit score affect my mortgage loan interest rate?

Your credit score significantly impacts your mortgage interest rate. A higher score can lead a lender to offer its most attractive interest rate, reducing the total cost of your mortgage. A lower score may result in a higher interest rate and stricter lending conditions — if you are approved at all.

What are principal and interest on a mortgage loan?

The principal and interest are key components of a mortgage payment. The principal is the original loan amount, and interest is the money you pay to the lender for the privilege of borrowing that amount. Over time, more of your payment goes toward the principal, reducing the loan balance and interest paid. An amortization schedule, available with your loan documents, will tell you how much of your monthly payment each month is going to each of these buckets.

How much should I put down on a mortgage?

You should put as much money as you comfortably can toward a down payment on a home, while ensuring that you aren’t pinching your finances to the bone. Don’t empty your emergency fund or stop making payments on other debt, for example. In fact, feel free to take advantage of the low down payments available to some buyers if you feel it’s the right time to buy. A first-time homebuyer can sometimes put down as little as 3% toward the purchase price of a home. And repeat buyers may be able to contribute just 5%. If you put down less than 20%, you will likely have to add private mortgage insurance payments to your monthly bill. Look at the entire financial picture to determine if that makes sense for you.

Should I choose a 30-year or 15-year mortgage term?

A 30-year term offers lower monthly payments, making homeownership more accessible. A 15-year term could save you thousands of dollars in interest but will require a higher monthly payment. If you can make a 15-year or 20-year term work with your budget, go for it. But particularly if this is your first home purchase, don’t feel bad about locking in 30 years. It is, after all, the most popular choice of mortgage term in the U.S.

How can I get a lower mortgage interest rate?

For the lowest mortgage interest rate, work to cultivate a strong credit score (aim for 700 or more, which is well over the 620 score you’ll need to qualify for a home loan). Go through the online prequalification process with multiple lenders to see how low a rate you might be able to obtain. A higher down payment may help, too, if you can afford to make one. If you already own a home, you can explore a mortgage refinance and compare the costs of your old loan versus a new one (plus closing costs) at a new, lower rate.

How much income do you need for a $400,000 mortgage?

You’ll probably need to make around $130,000 a year to qualify for a $400,000 mortgage, assuming it’s a 30-year loan at an interest rate of 7.00%, and you aren’t burdened by other significant debts. One general rule of thumb is that your home price shouldn’t be more than three times your gross income, assuming you don’t have other significant debts.

Can I afford a $300K house on a $70K salary?

It would be a stretch to afford a $300,000 property on a salary of $70,000 unless you can make a significant down payment. One general rule is that your house price should be no more than three times your salary. Use a home affordability calculator to assess if you can make a $300,000 home work with a large down payment.

How much is the payment on a $600,000, 30-year mortgage?

The cost of a $600,000 mortgage with a 30-year term will depend on your interest rate. At an interest rate of 6.00%, for example, you would pay $3,597.30 per month. At 8.00%, the payment would rise to $4,402.59. This estimate includes principal and interest but not property taxes, insurance, or other fees.

Learn more about mortgages:


SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*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.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. 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.
SOHL-Q325-077

Browse other home guides.