Current Mortgage Refinance Rates in Arkansas Today
ARKANSAS MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Arkansas.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Arkansas.
Key Points
• Mortgage refinancing can be a smart move to reduce your monthly payments or save money over the life of the loan, especially if the current rates in Arkansas are lower than what you have now.
• Over the past few years, Arkansas refinance rates have ranged from 3.15% in 2021 to a peak of around 7.00% in 2023.
• A 1% drop in the interest rate on a $300,000 mortgage could put around almost $200 back in your pocket each month.
• Refinancing to a 15-year mortgage can drastically cut down the total interest you pay over the loan’s life.
• If you’ve got at least 20% equity in your home, a cash-out refinance could be a smart move, giving you the financial flexibility for big expenses like home improvements or consolidating debt.
• Closing costs for refinancing usually fall between 2% and 5% of the loan amount.
Introduction to Mortgage Refinance Rates
A mortgage refinance is like hitting the reset button on your mortgage. It replaces your current home loan with a new one, often with more favorable terms and a different interest rate. The type of refinance you choose will depend on your financial goals, whether it’s to snag a lower interest rate or tap into your home’s equity.
This guide will walk you through how Arkansas refinance rates are set and how you can land the best deal. Understanding the factors that sway mortgage refinance rates can help you make a savvy choice. Plus, keeping an eye on the ebb and flow of refinance rates in Arkansas can clue you in on the prime time to make a move.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refi Interest Rates Come From?
Historically, the 10-year U.S. Treasury Note has been the most reliable indicator of future mortgage rates. When the yield on the Treasury Note rises, current mortgage rates usually climb as well. Housing market dynamics also affect rates: An oversupply of homes can prompt lenders to lower their rates to attract buyers. Broader economic conditions play a significant role, too. Strong economic growth and job creation tend to push interest rates up, while a recession typically leads to lower rates.
How Interest Rates Affect Home Affordability
Let’s talk about how interest rates can make a world of difference in your refinance. Your monthly payment is a product of your home loan amount, the term over which you’ll repay it, and the interest rate. For instance, a $200,000 loan at 6.00% over 30 years would mean a monthly payment of $1,199. But if that interest rate were 8.00%, your monthly payment would jump to $1,467. Over the life of the loan, that 2% difference could save you close to $100,000.
Little things can add up, and even a fraction of a percentage point can translate to significant savings. So to ensure you’re getting the best deal, keep an eye on the current mortgage refinance rates in Arkansas.
Trends in Arkansas Mortgage Refinance Rates
Arkansas has seen its share of rate shifts. In 2021, the average 30-year fixed mortgage rate was around 3.15%. But by 2023, it had climbed to about 7.00%. Early 2025 predictions suggest that current mortgage refinance rates in Arkansas will remain elevated for some time. This information can be helpful when deciding if now is the right time to refinance, especially if you’re looking to lower your rate or tap into your home’s equity.
Historical U.S. Mortgage Interest Rates
Mortgage interest rates in the United States have seen significant changes over the years. In the early 2000s, rates were around 6.00% or 7.00%. They dropped to around 3.00% in 2020-2021 but climbed back up to about 7% in 2023. By learning about historical trends, you can gain valuable context about the current mortgage refinance rates in Arkansas and make a more informed decision about refinancing your mortgage.
Historical Interest Rates in Arkansas
Mortgage refinance rates in Arkansas have followed the same trends seen across the country. These changes can have a big impact on the financial implications of refinancing for Arkansas homeowners, particularly in terms of monthly payments and total loan costs. Below, you’ll see the history of Arkansas mortgage rates for the years 2000-2018. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Arkansas Rate | National Rate |
|---|---|---|
| 2000 | 7.98 | 8.14 |
| 2001 | 6.82 | 7.03 |
| 2002 | 6.55 | 6.62 |
| 2003 | 5.84 | 5.83 |
| 2004 | 6.00 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.52 | 6.60 |
| 2007 | 6.47 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 4.93 | 5.06 |
| 2010 | 4.70 | 4.84 |
| 2011 | 4.57 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.94 | 3.92 |
| 2014 | 4.12 | 4.24 |
| 2015 | 3.88 | 3.91 |
| 2016 | 3.75 | 3.72 |
| 2017 | 4.08 | 4.03 |
| 2018 | 4.61 | 4.57 |
Why Refinance Your Mortgage?
Refinancing your mortgage can be a strategic move, tailored to your financial aspirations. If the current interest rates are in your favor, you could see a reduction in your monthly payments and save big over the life of your loan. To make the most of it, aim for at least 20% equity in your home, especially if you’re eyeing a cash-out refi. You can also use a refi to tweak your repayment term, switch from an adjustable-rate to a fixed-rate loan, or kiss mortgage insurance goodbye if you have an FHA loan and 20% equity.
Common Reasons to Refinance a Mortgage
Which of these reasons is closest to your own? The answer will factor into what type of mortgage refi you choose.
• You qualify for a lower interest rate because of improved credit or market conditions.
• You’re looking to adjust your repayment term to either ease your monthly payments (with a longer term) or pay off the loan quicker (with a shorter term).
• You’re looking to tap into your home equity for major expenses such as college tuition or home improvements.
• Your adjustable-rate mortgage is about to reset, and you’re considering a switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you want to eliminate mortgage insurance.
• You’re looking to release a cosigner from the loan.
Recommended: How to Refinance a Mortgage
How to Compare Mortgage Refi Interest Rates
To secure the best mortgage refinance rate, compare rates from multiple lenders. Consider the annual percentage rate (APR), which includes interest, fees, and any discount points you purchase. Evaluate how the refinance aligns with your financial goals. Use a calculator to estimate your savings and the recoupment time. Finally, monitor rate changes, and lock in a rate when the time is right.
Compare Arkansas Interest Rates by Mortgage Refinance Type
Refinance interest rates differ depending on the type of mortgage you choose. For each, closing costs will be about 2% to 5% of the loan amount. (While you may see ads for a “no closing cost refinance,” those lenders typically just roll your closing costs into your loan amount — meaning you’ll be paying interest on them for the life of your loan.)
Conventional Refinance
A conventional refinance, also known as a rate-and-term refinance, involves replacing the current mortgage with a new one that has different terms and an updated interest rate. Conventional refinances typically have higher rates than government-backed loans (think FHA, VA, and USDA loans), but they may be a good option for homeowners who are looking to lower their interest rate, change their loan term, or remove a cosigner. To qualify, you’ll need to meet credit score and equity requirements.
You could opt for lower monthly payments by extending the loan term (but pay more in total interest) or pay off your loan quicker by shortening the term. This type of refinance is particularly suited for homeowners with solid credit and a good chunk of equity in their home.
Cash-Out Refinance
A cash-out refinance allows you to tap into your home’s equity and receive a lump sum. It may come with a slightly higher interest rate than a traditional refinance, but the potential benefits make it worth considering. Imagine your home is valued at $500,000, and you currently owe $300,000 on your mortgage. That means you have $200,000 in equity. A lender may allow you to borrow up to 80% of that equity, leaving you with $100,000 after paying off your existing mortgage. This could be a solution for high-interest debt, home improvements, or other significant expenses.
FHA Refinance
FHA loans, backed by the Federal Housing Administration, often come with lower interest rates, sometimes as much as a full percentage point lower than conventional loans. If you already have an FHA loan, you may be eligible for an FHA Simple Refinance or an FHA Streamline Refinance. If you don’t have an FHA loan, you can still refinance with an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home improvement and rehabilitation projects.
VA Refinance
VA loans, backed by the United States Department of Veterans Affairs, offer some of the most competitive interest rates you’ll find. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can be a game-changer, potentially lowering your monthly payments and eliminating private mortgage insurance. If you’re a veteran who meets the criteria, this could be a great option for you.
15-Year Mortgage Refinance
Refinancing to a 15-year mortgage can be a game-changer, slashing the total interest you pay over the loan’s lifetime. Let’s say you have a 30-year, $500,000 loan at a 7.50% interest rate. You’d be looking at a monthly payment of around $3,500 and a whopping total interest paid of $759,000. But if you refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would go up to $4,500. Yet the total interest paid would be a much more manageable $309,000, which means you could save almost $450,000 in interest.
Adjustable-Rate Mortgage Refinance
An adjustable-rate mortgage (ARM) starts with a lower rate than a fixed-rate loan, but the rate changes over time in line with the market. If you’re planning to move or sell your home before the rate adjusts, refinancing with an ARM could be a smart move. You might be able to lower your monthly payments and free up cash for the next phase of your life./p>
How to Get the Best Available Mortgage Refi Interest Rate
To secure a competitive mortgage refinance rate, consider these steps:
• Build your credit score by being diligent with your bill payments and avoiding new debt.
• Keep your debt-to-income ratio under 36% for those better rates.
• Compare interest rates and fees from multiple lenders.
• Think about buying mortgage discount points to lower your interest rate.
• Consider a 10- or 15-year mortgage for even lower interest rates.
Online Refinance Calculators
Online refinance calculators are a great way to estimate what your new monthly payment might be and compare different refinance options. By using a refinance calculator, you can see what your potential savings might be and how long it would take to recoup your mortgage refinancing costs. This can help you make a more informed decision about whether or not refinancing is right for you. Refinance calculators can also help you compare different loan terms, interest rates, and fees so you can make the best decision for your financial goals.
Run the numbers on your home loan.
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Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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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.
The Takeaway
Mortgage refinancing can offer big financial benefits, like the potential for a lower interest rate, lower monthly payments, or the ability to take cash out of your home. But it’s important to weigh the costs to make sure a refinance aligns with your long-term financial goals. Whether you’re looking to save on interest, consolidate debt, or get cash for home improvements, understanding the different types of refinance and how to get the best rate can help you make a smart decision.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A new mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates going to drop?
No one can predict what interest rates will do in the future. The key question to ask is whether the potential benefits of refinancing your mortgage outweigh the costs. A refinance calculator can help you determine whether refinancing makes sense for your personal situation.
Can I refinance when rates are low?
Absolutely. When interest rates drop, you can refinance your loan to take advantage of the lower rates. But you should also consider the costs associated with refinancing, such as closing fees and any prepayment penalties. By weighing the potential savings against the expenses, you can make an informed decision about whether refinancing makes sense for you.
How much does 1 percent lower my monthly payment?
A 1% drop in your mortgage interest rate can make a big difference in your monthly payment. Take a $300,000 mortgage, for example. If you were to lower the interest rate from 7.00% to 6.00%, you would save about $165 per month. That adds up to a lot of money over the life of the loan.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
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Individuals checking accounts are used to manage personal finances. A business checking account, on the other hand, is a dedicated account used to manage your company’s revenue and expenses.
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A business checking account helps you easily track revenue and expenses, which is critical to keep your finances organized and properly fill out your business tax return.
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One Answer to High Mortgage Rates: A Smaller Home
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It’s no secret that there’s a national housing crisis post-COVID — high mortgage rates, steep prices, and a frustrating shortage of properties have made it pretty expensive to become a homeowner.
The data shows that renting is the more affordable option for many Americans right now, and that’s saying a lot, since rents aren’t cheap either.
So what can prospective homebuyers do? To adapt to this new normal, more people are buying a smaller, less expensive home, according to a recent analysis from the mortgage company Freddie Mac.
A lower price tag reduces the size of the down payment, loan, and monthly mortgage payments you’re signing up for — even with 30-year mortgage rates in the 6.5%-7% range.
Let’s say you buy a $300,000 home rather than a $425,000 home to make the 6.5% mortgage rate you’re offered more affordable. All else being equal, your monthly payment would drop from roughly $2,500 to $1,780, assuming a 20% down payment. (Brace yourself: $1,780 is what you’d be paying had you bought a $425,000 home back when rates were 3% in 2021.)
And there are other financial advantages: The less your home is worth, the lower your property tax and home insurance costs will be, generally speaking. You’re also likely to have lower utility bills (less to heat, etc.,) and there will be less space for you to maintain, repair, and furnish. Plus, smaller tends to mean more environmentally friendly.
The obvious downside, of course, is living with less space and less storage. You might outgrow the home sooner if you’re thinking about expanding your family.
And the demand for smaller homes can be particularly fierce, since they tend to be more affordable. In fact, about 35% of buyers of new homes said they’d be willing to downsize in exchange for a better price, according to one survey by the National Association of Home Builders.
So what? Mortgage rates have more than doubled since the pandemic and are expected to stay about this high through at least 2027. Compromising on space can be one way to afford the higher rates if you don’t want to hold off on buying. It might even be freeing to live with less stuff. Just be prepared for some tough competition.
Related Reading
• How To Track Down the Last Starter Homes in America (Realtor.com)
• The U.S. Is Facing a Severe Housing Shortage. Will Trump’s Proposals Help? (NPR)
• Is Now a Good Time to Buy a House? (Redfin)
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