Arkansas Mortgage Rates

July 3, 2015 11:34 AM Eastern

Refinance rates now in LITTLE ROCK, AR [Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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If you’re looking for mortgages or other information about buying a home in Arkansas, this page is a good place to start. In Arkansas, mortgage lending is regulated by the Arkansas Securities Department.

Arkansas Mortgage Rates

Mortgage rates vary from state to state for a number of reasons—different economic conditions, competition among lenders, and different laws governing lending rates.

Depending on your circumstances, your lender may be able to offer you a variety of other suitable mortgage options.

Buying a Home in Arkansas

Over 80 percent of homes are affordable in Arkansas if you earn the state's median income of $58,000 annually.

Median closing costs in Arkansas are $2,396.

After a sharp decline during the recession homes prices in Arkansas appear to be stabilizing and are expected to perform similarly to those in the rest of  the country with appreciation forecast at close to one percent.

FHA Mortgages in Arkansas

FHA mortgages can make home buying affordable, especially for first time buyers. Required down payments can be as low as 3.5%. Throughout the state FHA  mortgage loan limits are $271,050, well above the median sales price of $123,000 for a home in Arkansas. The FHA does not set mortgage rates; find the best  FHA mortgage rates by comparing quotes from FHA-approved lenders.

VA Home Loans

If you qualify for a VA mortgage, most lenders let you borrow up to four times the amount of your  VA guaranty. In all counties of Arkansas that translates to a loan limit of $417,000. Keep in mind that the VA does not limit mortgage amounts and some lenders may choose to go higher.