Mortgage Calculator Arkansas 2026: Payment, PMI & Transfer Tax
This mortgage calculator for Arkansas estimates your full monthly payment — principal & interest, property tax, homeowners insurance and PMI — plus the state real property transfer tax. Enter your own rate; everything is calculated privately in your browser.
A mortgage calculator for Arkansas estimates the full monthly cost of an Arkansas home loan: principal and interest from standard amortization, plus property tax, homeowners insurance and private mortgage insurance (PMI) when you put down less than 20%. It also shows the state real property transfer tax of $3.30 per $1,000 of the price, which the law splits between buyer and seller unless they agree otherwise.
How the Mortgage Calculator Arkansas Formula Works (Worked Example)
Principal and interest use the standard amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of payments. Property tax is the home price × your local rate ÷ 12, insurance is your annual premium ÷ 12, and PMI is the loan amount × your PMI rate ÷ 12. Example: a $200,000 Arkansas home, 10% down, 30-year fixed at a user-entered 6.5% (click Load Example above to reproduce it).
| Item | Inputs | Monthly |
|---|---|---|
| Principal & interest | $180,000 loan, 6.5%, 360 payments | $1,137.72 |
| Property tax | 0.56% of $200,000 ($1,120/yr) | $93.33 |
| Homeowners insurance | $1,700/yr (example — use your quote) | $141.67 |
| PMI | 0.6% of $180,000 ($1,080/yr) | $90.00 |
| Total monthly payment | $1,462.72 | |
| Transfer tax (one-time, split unless agreed) | $200,000 ÷ 1,000 × $3.30 | $660.00 |
Over 30 years this loan pays about $229,580 in interest. Your rate is an input, not an assumption — check the current weekly national average in Freddie Mac’s Primary Mortgage Market Survey and compare lender Loan Estimates.
Arkansas Property Tax Rate and Your Monthly Payment
The Tax Foundation (Property Taxes by State and County, 2026 edition, from Census American Community Survey data for 2020–2024) puts Arkansas’s statewide effective property tax rate at about 0.56% of owner-occupied home value. Homes are assessed at 20% of market value before local millage is applied. A homestead property tax credit then comes off the bill for an owner-occupied home; it is up to $600 on bills payable in 2026 (Act 330 of 2025) and up to $675 for assessment years from 2026, first payable in 2027 (Act 174 of 2026; Arkansas Assessment Coordination Division). The statewide rate is based on the tax owners actually paid, so it already reflects the credit; the calculator applies your rate to the full price and does not subtract the credit again.
| Local rate | Annual tax on $200,000 | Added to monthly payment |
|---|---|---|
| 0.42% | $840 | $70.00 |
| 0.56% (statewide default) | $1,120 | $93.33 |
| 0.84% | $1,680 | $140.00 |
Arkansas Closing Costs: Real Property Transfer Tax
Arkansas levies a real property transfer tax of $3.30 per $1,000 of the consideration under Ark. Code § 26-60-105, paid through documentary stamps before the deed is recorded. Under Ark. Code § 26-60-106 the grantor and grantee are both liable, and the tax is split equally unless the purchase contract says otherwise. In practice the contract decides who pays, so check yours.
| Arkansas item | Amount | Usually paid by |
|---|---|---|
| Real property transfer tax (Ark. Code § 26-60-105) | $3.30 per $1,000 — $660.00 on $200,000 | Split 50/50 unless the contract says otherwise |
| Escrow deposits for tax and insurance | Set by your lender — see your Loan Estimate | Buyer |
| Lender, appraisal and title charges | Vary by lender and title company — compare Loan Estimates | Negotiable |
Some costs are negotiable, and sellers sometimes cover part of a buyer’s closing costs as a concession.
How Arkansas Mortgage Rates Affect Your Payment
Rates in Arkansas follow national mortgage markets and vary by lender, credit score, down payment and loan type. The 6.95% default is an example rate, not a quoted average. On a $200,000 home with 20% down, it produces a monthly principal and interest payment of about $1,059. A 0.25% rate increase adds roughly $27 to that payment, so shopping multiple lenders can save thousands over the life of the loan.
Adjustable-rate mortgages (ARMs) often start lower but carry rate-reset risk. FHA loans (3.5% down), VA loans (0% down for eligible veterans) and USDA loans (0% down in eligible rural areas) are alternatives to a conventional loan in Arkansas.
First-Time Buyer Programs in Arkansas
The Arkansas Development Finance Authority (ADFA) offers Move Up first mortgages and down payment assistance for eligible buyers. Check ADFA for current income and price limits.
FHA loans are available nationwide with 3.5% down for borrowers with a 580+ credit score. VA loans require no down payment and no PMI for qualified veterans and service members.
If your down payment is below 20%, PMI on a $180,000 loan adds about $90/month at a 0.6% annual rate. The Urban Institute puts typical PMI at roughly 0.46%–1.5% of the loan per year depending on credit score. PMI can be removed once your loan-to-value ratio reaches 80%, so extra payments accelerate the timeline to dropping PMI.
Last updated: October 2026. Estimates only — confirm figures with your lender, title company and local tax office.
Frequently Asked Questions
What is the average mortgage rate in Arkansas in 2026?
Arkansas mortgage rates track national averages and change weekly. Check the Freddie Mac Primary Mortgage Market Survey for the current 30-year fixed average, then compare quotes from several lenders - your rate depends on credit score, down payment and loan type.
What is the average monthly mortgage payment in Arkansas?
It depends on price, rate and local taxes. As an example, a $200,000 home with 20% down at 6.95% comes to about $1,294 a month in principal, interest, taxes and insurance, assuming a 0.56% property tax rate and $1,700 a year for insurance. Enter your own numbers above.
Do I need PMI in Arkansas?
Yes — if your down payment is less than 20%, lenders in Arkansas require Private Mortgage Insurance (PMI) on conventional loans. The Urban Institute puts typical PMI at about 0.46%–1.5% of the loan amount per year, depending on credit score. PMI is removed once you reach 20% equity.
What is the average home price in Arkansas?
Home prices change every month and vary widely by city and county, so this page does not quote a statewide median. The $200,000 default in the calculator is only an example — enter the price of the home you are considering.
What is the property tax rate in Arkansas?
The Tax Foundation’s 2026 edition, using Census data for 2020-2024, puts Arkansas’s statewide effective property tax rate at about 0.56% - roughly $1,120 a year on a $200,000 home. That average already reflects the homestead credit, which is up to $600 on bills payable in 2026 and up to $675 for assessment years from 2026 (first payable in 2027). Rates vary by county and school district.
How much is the real estate transfer tax in Arkansas?
Arkansas charges $3.30 per $1,000 of the sale price under Ark. Code 26-60-105, which is $660.00 on a $200,000 home. Buyer and seller are both liable, and by law the tax is split equally unless the purchase contract assigns it to one side.
What is the monthly payment on a $200,000 house in Arkansas?
With 10% down and a 30-year fixed loan at 6.5%, principal and interest is about $1,138 a month. Adding 0.56% property tax ($93), $1,700 a year insurance ($142) and 0.6% PMI ($90) brings the total to about $1,463 a month.