Arizona Mortgage Calculator
Mortgage is next to the only affordable option for low to average income home buyers in many parts of Arizona and the rest of the United States. On this page we offer a convenient Arizona home loan calculator to gauge your potential expenses, and up-to-date answers to several frequently asked questions concerning buying a house in Arizona.
| Total principal & interest | $0 |
| Monthly payment | $0 |
| Total interest paid | $0 |
| Payoff date | Date |
Detailed payment info
| Date | Payment | Principal Paid | Interest Paid | Remaining Balance |
|---|
Today's Mortgage Rates Trends in Arizona
| Product | Rate | 1w change | APR | 1w change |
|---|---|---|---|---|
| 30-year fixed | 7.622 | 0.62% | 7.645 | 0.61% |
| 20-year fixed | 7.523 | 0.96% | 7.552 | 0.95% |
| 15-year fixed | 6.866 | 0.64% | 6.902 | 0.64% |
| 10-year fixed | 6.776 | -0.3% | 6.826 | -0.29% |
| 30-year fixed-rate FHA | 7.194 | -0.38% | 8.313 | -0.32% |
| 30-year fixed-rate VA | 7.137 | 0.06% | 7.38 | 0.07% |
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
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Arizona Mortgage Calculator
In many areas of Arizona and other parts of the United States, a mortgage is the best choice for economically feasible homebuyers with low to moderate incomes. This webpage presents an easily accessible Arizona home loan calculator to evaluate your possible costs, along with the latest solutions to numerous frequently inquired queries about purchasing a property in Arizona.
Best mortgage lenders in Arizona
The foremost mortgage financiers in Arizona have a nationwide reach. Among these are widely recognized institutions like District Lending Mortgage, AmeriSave, and Rocket Mortgage. In addition, there are several reliable options that may not be as widely known, including Chandler Mortgage LLC, and Sun American Mortgage Company.
How to calculate mortgage payment in Arizona
Use our efficient and straightforward mortgage calculator to analyze your forthcoming monthly expenditures. A comprehensive step-by-step guide is presented below.
How to Use Our Mortgage Calculator
Take advantage of our Arizona home loan calculator to meticulously plan your upcoming expenses. Let’s closely examine each aspect to develop a clearer understanding of the mortgage parameters in Arizona.
The first element to consider is the cost of the property – that is, the amount you are intending to spend on your future residence. A down payment represents the portion of this cost that must be paid upfront. To avoid costly insurance, it is essential to provide a minimum down payment of 20% (in the case of a conventional loan). The remaining amount constitutes the principal (e.g., 80% of the property cost assuming a 20% down payment).
Loan duration refers to the length of time required for complete repayment of your mortgage through scheduled payments. Fixed-rate conforming loans generally have a maximum duration of 30 years, while adjustable-rate options often offer shorter terms.
An interest rate is a fixed or fluctuating fraction of the principal amount that you must pay for the loan. It is important to note that you are charged an annual percentage rate (APR), which is not precisely identical to the interest rate. While the interest rate comprises the majority of the APR value, the latter also includes various fees (e.g., origination fee, closing costs, insurance payments, etc.).
For a more precise evaluation, the interest rate utilized for these calculations is based on the current mortgage rates in Arizona, considering a property price of $400,000 and a down payment of 10%.
Arizona Housing Market 2023
Over the past year, there has been a significant surge in the market valuation of residential properties in Arizona. This upward trajectory aligns with a persistent pattern that has been further intensified by the impact of the COVID pandemic. However, it is worth noting that the rate of expansion has decelerated in comparison to the previous year. Simultaneously, purchase and refinance rates have been steadily climbing for a considerable duration and are anticipated to continue their upward trajectory in the coming months.
Median property taxes in Arizona counties
The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.
| County | Avg. property tax rate | Avg. home value |
|---|---|---|
| Apache County | $598 | $49,400 |
| Cochise County | $977 | $155,600 |
| Coconino County | $1,290 | $277,400 |
| Gila County | $942 | $153,600 |
| Graham County | $627 | $123,500 |
| Greenlee County | $303 | $87,500 |
| La Paz County | $831 | $77,400 |
| Maricopa County | $1,418 | $256,500 |
| Mohave County | $916 | $157,100 |
| Navajo County | $842 | $138,900 |
| Pima County | $1,614 | $182,300 |
| Pinal County | $1,383 | $179,900 |
| Santa Cruz County | $1,131 | $138,400 |
| Yavapai County | $1,246 | $260,900 |
| Yuma County | $895 | $132,500 |
Source: American Communities Survey 2016, U.S. Census
How do I calculate my mortgage payment?
The most convenient approach to accomplish this is by utilizing our calculator. Our calculator operates on a straightforward equation that you can also employ manually to compute the payment amount:
M = P*i(1 + i)^n / (1 + i)^n – 1
M – estimated monthly mortgage payment;
P – principal;
I – monthly interest rate (to determine this, divide your annual mortgage rate by 12);
N – the loan term expressed in months (in other words, the total number of monthly payments)
Let's imagine you are applying for a 15-year mortgage loan with a fixed APR of 6.99% (equivalent to .0699 as a unit fraction). The property has a price tag of $500,000, with a 10% down payment of $50,000. As a result, the principal amount (P) will be 90% of the initial home cost ($500,000 – $50,000 = $450,000).
I = .0699 % / 12 = .005825%.
Lastly, let's convert the loan duration from years to months: N = 15 * 12 = 180.
M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.
Hence, you will be making an approximate monthly payment of around $4042.
It is important to note that the calculated value of M is an estimation and does not account for any additional fees.
Tips for first-time home buyers in Arizona
At the outset, multiple federal agencies (USDA, FHA, and VA) guarantee loans for chosen borrowers, offering a range of options tailored to the needs of first-time homebuyers, aligning with their budgetary constraints.
Aside from these government-backed programs, it is prudent to explore the opportunities provided by UHC (Arizona Housing Corporation) to residents of Arizona. Specifically, individuals embarking on their first home purchase can consider applying for the FirstHome program, a down payment and closing costs assistance initiative, subject to meeting the eligibility criteria of an FHA loan and a FICO score of at least 660. This avenue provides coverage for up to 6% of the loan amount to be used for the down payment and/or the closing costs, in the form of a second loan with a fixed interest rate over a 30-year term.
If you do not meet the requirements for the FirstHome program, there is no need to despair. There is an alternative program known as the Arizona Housing Score Loan, which covers up to 4% of the loan amount. A minimum satisfactory credit score of 620 is necessary to qualify for this option.
Essential pointers for first-time individuals:
- Secure pre-approval in advance. This step will enhance your creditworthiness in the eyes of home sellers. It is highly recommended that you get pre-approval letters from at least two or three different lenders, not just one.
- Compare varying mortgage rates. Opt for at least three lenders. The more options you assess, the better.
- Conduct initial calculations based on the approved amount. Strategize your forthcoming expenditures.
- Allocate as much as you can for an initial payment – and do so as early as feasible. The down payment will reduce the principal sum, consequently minimizing potential expenses. Hence, commencing saving ahead of time is crucial.
- If you meet the requirements for a VA loan, prioritize this alternative above all others.
- Explore government-backed initiatives and local aid programs. Tempting opportunities may arise – seize them without delay.
- Repay any outstanding debts, if feasible.