Buying a new home can be such an exciting experience. However, in order to complete the purchase, most people will need a mortgage loan. Arkansas is a state in the country that offers mortgages to pay for a new home. The state, situated along the Mississippi River, is home to numerous rivers, many lakes, and several caves. The state possesses millions of acres in forest land, and millions of Native Americans reside in Arkansas. According to the Arkansas Realtor Association, the housing market in Arkansas is expected to slightly improve over the next year.
Arkansas Mortgage Rates
https://www.zillow.com/mortgage-rates/ar/ states that the rate of a 30-year fixed mortgage stands at 4.5%. Some companies claim that you can get a loan for as low as 4%. These rates show a slight decrease from the previous weeks. If you prefer a 15-year loan, the interest rate stands at about 3.27%, which is a slight increase. The rates in Little Rock, Fayettville, and Hot Springs are as low as 4.066%, according to Bankrate.com. This is comparable all across the state.
Types of Mortgage Loans in Arkansas
- Fixed rate loans: Fixed rate loans normally come in terms of a 30 year, 15 year, or a 10 year. With these loans, your rate will stay the same throughout the life of the loan. You can lock in an interest rate, and it cannot increase or decrease throughout the life of the loan. This is a good option if you are planning to stay in your home for a long period.
- Adjustable rate mortgage: With this type of mortgage, your rate can change according to the market. This is a good option if you are only going to reside in the residence for a few years.
- Home equity loan: If you need some extra cash, you can get a home equity loan. You will take out an additional loan, and it is secured against the equity in your home.
- Refinance: You could refinance your home and you might get a lower interest rate, which results in a lower monthly payment.
- FHA loan: This loan, backed by the federal government, offers a mortgage with as little as 3.5% down payment.
- VA loan: This government-backed loan is available to service members or retired service members. You can obtain a VA loan with no down payment and no closing cost.
- USDA rural development loan: This loan is intended to help people with lower incomes.
When searching for a mortgage loan, it is important to look through the network of lenders who offer mortgages in Arkansas. You want to find a lender who can offer you the lowest interest rates available. The interest rate will be determined by your credit score. If your credit score is low, you might want to consider raising it before you apply for a mortgage loan. Your lender needs to be reliable; it is a good idea to read the reviews before applying with that lender. Customer service is also important when choosing a lender. After you find a lender who fits your needs, you can then be confident that your mortgage needs will be met, and you can enjoy your knew home.