Arizona Mortgage Rates
Compare Arizona mortgage rates and choose the best option for your needs.
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Today's Mortgage Rates Trends in Arizona
|Product||Rate||1w change||APR||1w change|
|30-year fixed-rate FHA||7.156||2.96%||8.277||2.46%|
|30-year fixed-rate VA||7.133||3.11%||7.375||3.05%|
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
Mortgage in Arizona: Top Lenders in 2023
Willing to buy a home in Arizona State? The easiest way to do so is to use a mortgage loan, which is effective irrespective of what type of property you are searching for – a residential estate or an apartment. However, the home loan terms offered by different mortgage lenders can vary greatly (use our mortgage calculator to estimate your future expenses). In the framework of this guide, we’ll review some of the top-rated lenders and try to find out which ones are worth considering.
AZ Mortgage Lenders Comparison
All the lenders reviewed are trustworthy companies with reasonable rates and solid track records. To give you the most detailed information, we’ll compare them by several key criteria – an APR, the minimal down payment, minimal requirements, and so on.
First Citizens Bank
First Citizens Bank is among the oldest and largest banks in the United States that serve retail customers.
Mortgages are issued with fixed or adjustable (increasing) interest rates. The fixed APR makes up 6.289% for a 15-year, 6.256% for a 20-year, and 6.602% for a 30-year mortgage under perfect conditions. The APR can be lowered by buying points (upfront payments equivalent to 1% of the principal). The bank demands a minimum of two years of employment, a credit score of 620 or more, and a DTI of no more than 43%.
|Extremely well-established. The bank has been around since forever, engaging in a broad variety of financial services.||The website is scanty concerning lender fees (e.g., an underwriting fee can be expected).|
|Offers variable-rate mortgages. These can be especially handy if you plan on selling or refinancing.|
Since its founding in 1985, Rocket Mortgage has established itself as the single most popular mortgage lender (and most successful lender overall) in the United States. For most of its existence Rocket Mortgage was known as Quicken Loans, a trademark it still retains. It was one of the first centralized lenders to offer its services online across the entire country. The rates are well above the average: for a fixed-rate 30-year mortgage, the APR ends up amounting to 7.199% even under near-perfect conditions.
Other options include adjustable-rate mortgages, refinancing, FHA- and VA-backed plans, etc. Like all lenders, it has a set of minimum requirements for borrowers, chief among them being a credit score no less than 620 (580 for FHA loans).
|Available nationwide.||Relatively high rates.|
|Abundance of third-party information.||Lack of USDA loans.|
District Lending Mortgage
District Lending is an Arizona-based mortgage broker founded in 2018. It offers both conforming and non-conforming loan options. Although the conditions and eligibility criteria are not clearly stated anywhere on the broker’s website, low percentages are advertised, allegedly due to the fully online format. Among the non-conventional mortgage options, there are jumbo loans for properties exceeding the usual maximum value, and FHA loans with lower down payments (typically 3.5%), but lower limits compared to those for the conforming loans. VA-backed loans for current and former service members are available both for purchasing and refinancing.
The third main type of government-backed programs, USDA loans on rural property, is not presented in District Lending’s catalog. As said above, the minimum eligibility criteria remain unclear, but the online calculator starts with the FICO score of 640.
|Very low mortgage rates advertised.||Available in Arizona only.|
|No USDA-insured loan options provided.|
Average Mortgage Rate in Arizona from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Arizona.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Arizona
|The median home value in Arizona||$359,278|
|The income required to buy the median priced home in Arizona||$58,866|
|The monthly mortgage payment required to buy the median priced home in Arizona||$1,363|
|The median household income for Arizona||$67,925|
Things to Consider When Choosing a Mortgage Lender
A mortgage loan implies undertaking a serious commitment for a term of 15 through 30 years. So you need to think twice before signing an agreement with this or that lender. There are some core aspects to consider when choosing a lending entity.
Type of Lender
Basically, there are two popular options – banks and online mortgage lenders. Banks frequently offer attractive rates but they tend to practice strict credit checks. The approval time is longer, and eligibility criteria are quite hard to comply with. Online lenders work much faster, and their requirements for homebuyers are not too severe.
APR and Fees
Every loan has its cost, and mortgage is no exception. This cost is more than just an interest rate. It also includes extra fees, such as the origination fee, mortgage insurance fee, closing costs, etc. As of writing, for a fix-rated 30-year loan, the average mortgage rate in Arizona is 6.58%.
Terms and Conditions
Here, you need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type, your current status (military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which is its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in Arizona?
The list of reliable AZ mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in Arizona
Buying a home for the first time is quite challenging. Happily, residents of Arizona can take advantage of some governmental programs aimed at raising mortgage affordability.
- Federal Housing Administration loan program. In its framework, a buyer gets insurance from the federal government. The fee for this insurance is included in the total cost of the future loan. In return for this, the homebuyer gets some serious benefits: a low interest rate and minimal credit requirements. Thus, his FICO score can be as low as 500, and the debt to income ratio – just 50%.
- USDA loan program. It is oriented toward those living in rural areas. The participants of this program can get a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in this region.
- VA loan programs. They are insured by the Veteran Affairs Department. This mortgage option is available to former militaries or their spouses.
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.