Arkansas Mortgage Rates
Compare Arkansas mortgage rates and choose the best option for your needs.
- Minimum 620 credit score needed to prequalify
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Today's Mortgage Rates Trends in Arkansas
| Product | Rate | 1w change | APR | 1w change |
|---|---|---|---|---|
| 30-year fixed | 7.728 | 0.92% | 7.751 | 0.92% |
| 20-year fixed | 7.628 | 0.76% | 7.657 | 0.76% |
| 15-year fixed | 6.981 | 0.3% | 7.017 | 0.3% |
| 10-year fixed | 6.942 | 0.63% | 6.992 | 0.63% |
| 30-year fixed-rate FHA | 7.348 | 0.14% | 8.463 | 0.09% |
| 30-year fixed-rate VA | 7.337 | 1.38% | 7.582 | 1.35% |
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
Mortgage in Arkansas: Top Lenders in 2024
Are you considering purchasing a home in Arkansas State? Utilizing a mortgage loan is often the most convenient approach, regardless of the type of property you're seeking, whether it's a residential estate or an apartment. However, it's important to note that the terms and conditions of home loans can vary significantly among different mortgage lenders. To get a better understanding of your potential expenses, you can utilize our mortgage calculator. In this guide, we will assess and evaluate some of the top-rated lenders in Arkansas to help you determine which ones are worth considering.
AR Mortgage Lenders Comparison
All the lenders we have reviewed are reputable companies with competitive rates and proven track records. In order to provide you with comprehensive information, we will compare them based on several key criteria, including the APR (Annual Percentage Rate), the minimum down payment, minimum requirements, and other relevant factors. This comparison will help you make an informed decision and select the lender that best suits your needs.
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. appeared in 2016. While its physical headquarters are in New York, Morty provides mortgage services across the nation, except for four states: Hawaii, Massachusetts, Missouri, and Nevada.
Morty, Inc. offers a range of mortgage options, including fixed-rate and variable-rate conventional and jumbo mortgages, as well as FHA-insured loans. However, their refinancing services are limited to loans originally issued through Morty.
For a 30-year fixed-rate mortgage, the APR is 6.667%. The rates are comparatively lower for 20-year and 10-year loans, at 6.425% and 5.452% respectively. To qualify for a mortgage through Morty, applicants need a minimum credit score of 600 and a DTI (Debt-to-Income) ratio equal to or less than 45%. The required minimum down payment varies based on the size of the property.
| Pros: | Cons: |
|---|---|
| Wide range of options. Morty, Inc. offers various mortgage options, including conventional, jumbo, and FHA-insured loans. This provides borrowers with flexibility and the ability to choose a mortgage product that suits their needs. | Limited physical presence. Morty's physical headquarters are located in New York City, which means their in-person assistance may be limited in Arkansas. However, their online platform still provides access to their services. |
| Nationwide coverage. Morty, Inc. operates across the nation, including Arkansas, making their services accessible to borrowers in the state. | Limited coverage. While Morty, Inc. operates nationwide, there are four states where their services are not available, including Hawaii, Massachusetts, Missouri, and Nevada. It's important to verify if Morty operates fully in Arkansas before proceeding with a mortgage application. |
| Competitive rates. Morty, Inc. offers competitive mortgage rates, which can potentially save borrowers money over the life of their loan. | Minimum requirements. Morty, Inc. has specific minimum requirements, such as a credit score of at least 600 and a DTI ratio of 45% or less. Some borrowers may find these criteria restrictive if they don't meet the specified thresholds. |
| Streamlined refinancing process. For those who have already obtained a loan through Morty, the company offers refinancing services. This streamlined process can make it easier for borrowers to explore refinancing options. | Down payment variation. The minimum down payment requirement varies based on the size of the property, which may introduce some uncertainty for borrowers. |
AmeriSave
AmeriSave has established itself as a nationwide lender since its foundation in 2002. While it caters to borrowers across the country, the state of Georgia often benefits from enticing offers. The lender's strong credibility is supported by its excellent ratings from BBB (A+) and Trustpilot (4.3/5).
While AmeriSave advertises an attractive rate of 4.899%, it's important to note that this rate typically requires a FICO score of 740 and a 20% down payment. In reality, your actual rate may be higher than the advertised rate. For a conventional loan, a credit score of 620 is generally required, while government-insured plans may be accessible with a credit score starting from 600.
| Pros: | Cons: |
|---|---|
| Nationwide Presence. AmeriSave is a nationwide lender, providing access to their services in Arkansas and ensuring a wide range of mortgage options. | Advertised Rates vs. Actual Rates. The rates advertised by AmeriSave may not reflect the rates you ultimately qualify for. Your actual rate may be higher, depending on factors such as credit score, down payment, and loan terms. |
| Established Reputation. With over two decades of experience and positive ratings from reputable sources like BBB and Trustpilot, AmeriSave has built a strong reputation in the lending industry. | Limited Physical Presence. While AmeriSave operates nationwide, it originated in Georgia, which means there may be limited physical branch locations in Arkansas, potentially affecting in-person customer service. |
| Competitive Rates. AmeriSave offers competitive rates, making it attractive for borrowers seeking affordable mortgage options. | Down Payment Requirements. AmeriSave's attractive rates often come with a requirement for a higher down payment, such as 20%. This may be a challenge for borrowers who have limited funds for a down payment. |
| Convenient Online Platform. As an online lender, AmeriSave provides a streamlined and convenient digital platform for mortgage applications, making the process faster and more accessible. | Limited Information on Specific Arkansas Offers. Although AmeriSave serves Arkansas, the available information may be limited, and it's advisable to reach out directly to the lender to inquire about their specific offers and programs in the state. |
PenFed Credit Union
Pentagon Federal Credit Union started in 1935 and was at first aimed exclusively at service members. Nowadays, however, everyone can apply.
Prospective borrowers can benefit from competitive APR values, such as 5.596% for a 15-year conventional mortgage, 6.078% for a 20-year mortgage, and 6.548% for a 30-year mortgage (with a credit score of 700 - 739 and a 20% down payment). To qualify for a conventional loan, a minimum credit score of 650 is required, while a score of 700 is necessary for non-conforming jumbo loans. FHA options have a typical minimum credit score requirement of 620.
| Pros: | Cons: |
|---|---|
| Long-standing institution. The Pentagon Federal Credit Union has been in operation since 1935, indicating its stability and experience in the mortgage lending industry. | Membership requirement. While the credit union is open to everyone, there may still be certain membership requirements or eligibility criteria that borrowers need to meet before becoming members and accessing their mortgage products. |
| Military background. Although now open to everyone, the credit union's roots in serving the military community may result in specialized knowledge and services tailored to the unique needs of military personnel and veterans. | Limited physical presence. Although the Pentagon Federal Credit Union has expanded its reach, its physical branch locations may be limited in some areas, potentially impacting convenience for in-person interactions. |
| Competitive APR values. The credit union offers competitive annual percentage rates (APR) on mortgage loans, which can potentially save borrowers money over the life of the loan. | Specific credit score requirements. The credit union has specific credit score requirements for different types of loans, which may restrict access for borrowers with lower credit scores. |
| Diverse mortgage options. The Pentagon Federal Credit Union provides various mortgage options, including conventional loans and FHA options, allowing borrowers to choose the one that best suits their needs and financial situation. | Limited information. The provided information lacks detailed specifics about additional fees, loan terms, and customer service, making it difficult to assess the complete picture of the mortgage lending experience with the credit union. |
Average Mortgage Rate in Arkansas from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Arkansas.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Arkansas
| Criteria | Amount, $ |
|---|---|
| The median home value in Arkansas | $167,367 |
| The income required to buy the median priced home in Arkansas | $27,422 |
| The monthly mortgage payment required to buy the median priced home in Arkansas | $635 |
| The median household income for Arkansas | $53,097 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan is a significant financial commitment that typically spans 15 to 30 years. It is crucial to carefully consider your options before finalizing an agreement with any lender. There are several key factors to take into account when selecting a lending institution.
Type of Lender
In essence, there are two main choices when it comes to obtaining a mortgage: traditional banks and online mortgage lenders. Banks often provide competitive interest rates, but they typically have stricter credit evaluation processes. This can result in longer approval times and more challenging eligibility criteria for borrowers. On the other hand, online lenders offer quicker processing times and tend to have more flexible requirements for prospective homebuyers.
APR and Fees
Like any loan, a mortgage comes with various expenses in addition to the interest rate. These costs encompass additional fees such as the origination fee, mortgage insurance fee, closing costs, and more. At the time of writing, in Arkansas, the average mortgage rate for a fixed-rate 30-year loan is 6.58%. It's important to consider both the interest rate and associated fees when evaluating the overall cost of a mortgage.
Terms and Conditions
In this context, it is essential to take into account the minimum down payment requirement, which can range from 0% to 20% depending on factors such as loan type and individual circumstances (such as military status, employment status, self-employment, etc.). Another significant factor to consider is the loan term, which determines the total length of the mortgage. Common options include 15 and 30 years. These considerations play a crucial role in determining the specific terms and conditions of your mortgage.
What Mortgage Lender is the best in Arkansas?
The extensive list of trustworthy mortgage lenders in Arkansas makes it challenging to provide a definitive answer to this question. The choice ultimately depends on individual preferences and needs. However, it's worth noting that Rocket Mortgage stands out as an industry leader, with a substantial loan volume of $11.5 billion in 2021. To make an informed decision, I recommend referring to our list of recommended lenders, which can help you navigate the options and choose the most suitable one for your mortgage needs.
First-Time Homebuyer Programs in Arkansas
For first-time homebuyers in Arkansas, navigating the process can be challenging. However, there are government programs available to enhance mortgage affordability in the state:
- Federal Housing Administration loan program. This program provides insurance to buyers through the federal government. The insurance fee is incorporated into the total loan cost. In return, homebuyers enjoy benefits such as a low-interest rate and minimal credit requirements. With an FHA loan, individuals with a FICO score as low as 500 and a debt-to-income ratio of 50% can qualify.
- USDA loan program. Designed for those residing in rural areas, this program offers mortgage loans with a zero down payment requirement. However, participants must ensure that their annual income does not exceed 115% of the average income in the region.
- VA loan programs. Insured by the Veteran Affairs Department, these mortgage options are exclusively available to former military personnel or their spouses. VA loans provide unique benefits and opportunities for veterans to obtain affordable housing.
Pre-Approval: What Does It Mean?
Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.