Arizona Mortgage Rates
Compare Arizona mortgage rates and choose the best option for your needs.
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- As low as 3% down on a fixed-rate mortgage
- 0% Down VA Loans for Veterans & Military
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- Competitively low VA rates, no PMI required
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Today's Mortgage Rates Trends in Arizona
| Product | Rate | 1w change | APR | 1w change |
|---|---|---|---|---|
| 30-year fixed | 7.177 | 0% | 7.199 | 0% |
| 20-year fixed | 7.025 | 0% | 7.054 | 0% |
| 15-year fixed | 6.359 | 0% | 6.394 | 0% |
| 10-year fixed | 6.344 | 0% | 6.394 | 0% |
| 30-year fixed-rate FHA | 6.794 | 0% | 7.927 | 0% |
| 30-year fixed-rate VA | 6.83 | 0% | 7.068 | 0% |
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
Mortgage in Arizona: Top Lenders in 2024
If you're considering buying a home in Arizona, utilizing a mortgage loan can be a convenient option, regardless of the type of property you're looking for, whether it's a residential estate or an apartment. It's important to note that the terms and conditions of home loans can vary significantly among different mortgage lenders. To estimate your future expenses, you can use our mortgage calculator. In this guide, we will review some of the top-rated lenders in Arizona to help you determine which ones are worth considering for your home financing needs.
AZ Mortgage Lenders Comparison
All the lenders that have been reviewed are reputable companies with a strong track record and competitive rates. To provide you with comprehensive information, we will compare them based on key criteria such as the Annual Percentage Rate (APR), the minimum down payment, minimum requirements, and other relevant factors. This comparison will help you make an informed decision about which lender aligns best with your specific needs and financial situation.
First Citizens Bank
First Citizens Bank is a well-established and prominent financial institution in the United States, catering to retail customers. The Bank offers mortgage options with both fixed and adjustable interest rates to accommodate different borrower preferences.
For fixed-rate mortgages, the current APR stands at 6.289% for a 15-year term, 6.256% for a 20-year term, and 6.602% for a 30-year term, assuming ideal conditions. It's worth noting that borrowers have the option to reduce the APR by purchasing points, which are upfront payments equivalent to 1% of the loan principal.
To qualify for a mortgage from First Citizens Bank, applicants typically need a minimum of two years of employment history, a credit score of 620 or higher, and a debt-to-income ratio (DTI) that does not exceed 43%.
By following these requirements and considering the available mortgage terms, borrowers can assess whether First Citizens Bank aligns with their financial goals and explore the potential benefits of obtaining a mortgage through this established banking institution.
| Pros: | Cons: |
|---|---|
| Established and reputable institution. The First Citizens Bank is one of the oldest and largest banks in the United States, known for serving retail customers. This can provide borrowers with a sense of security and confidence in the bank's reliability. | Strict Qualification Requirements. The First Citizens Bank has specific qualification criteria, including a minimum credit score of 620 and a maximum debt-to-income ratio of 43%. Meeting these requirements may be challenging for some borrowers, especially those with lower credit scores or higher debt levels. |
| Variety of mortgage options. The Bank offers a range of mortgage options, including fixed-rate and adjustable-rate mortgages. This allows borrowers to choose a loan product that suits their specific needs and preferences. | Limited availability. While the First Citizens Bank is a notable institution, its mortgage services may not be available in all areas of Arizona. It's important for potential borrowers to confirm whether the bank operates in their desired location before considering them as mortgage lenders. |
| Competitive interest rates. The First Citizens Bank provides competitive interest rates on their mortgages. The advertised APR for their mortgage products is relatively favorable, which can potentially save borrowers money over the long term. | Potential for higher rates without ideal conditions. The advertised APRs are based on perfect conditions, and individual borrowers may not qualify for the lowest rates. Factors such as credit history, loan-to-value ratio, and other financial aspects can influence the final interest rate, potentially resulting in higher rates than initially advertised. |
| Ability to lower APR with points. Borrowers have the option to reduce their APR by purchasing points, which can be advantageous for those who can afford the upfront payment. This allows borrowers to customize their mortgage terms and potentially lower their interest expenses. | Other lender options. While the First Citizens Bank is a reputable choice, it's always beneficial for borrowers to compare mortgage offerings from multiple lenders. This allows borrowers to explore a wider range of options, potentially finding better rates or more suitable loan terms from other lenders. |
Rocket Mortgage
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.
Offering a range of services including adjustable-rate mortgages, refinancing, and FHA- and VA-backed plans, it caters to diverse borrower needs. It's important to note that their rates tend to be higher than the average, with a fixed-rate 30-year mortgage carrying an APR of 7.199% even in near-perfect conditions. To qualify for their mortgage products, borrowers must meet certain criteria, including a minimum credit score of 620 (580 for FHA loans), as is customary with all lenders.
| Pros: | Cons: |
|---|---|
| Established reputation. Rocket Mortgage's long-standing presence and recognition as a top lender in the industry instill confidence in its reliability and expertise. | Minimum credit score requirement. Rocket Mortgage sets a minimum credit score requirement of 620 (580 for FHA loans). This may pose a challenge for borrowers with lower credit scores, limiting their eligibility for certain loan programs. |
| Online accessibility. As one of the pioneers in online lending, Rocket Mortgage offers a convenient and user-friendly digital platform, allowing borrowers to access and manage their mortgage process remotely. | Rates may not be the lowest. While Rocket Mortgage strives to offer competitive rates, it's essential for borrowers to compare rates from multiple lenders. Other lenders may provide more favorable terms, making it important to explore all available options. |
| Diverse mortgage options. Rocket Mortgage provides a range of mortgage options, including adjustable-rate mortgages, refinancing, and FHA- and VA-backed plans, catering to various financial needs and goals. | Limited in-person support. Given its online-focused approach, Rocket Mortgage's customer service, and support primarily operate through digital channels. Borrowers seeking extensive in-person assistance may find this aspect less favorable. |
| Competitive rates. While the APR for a fixed-rate 30-year mortgage may be higher compared to the average, Rocket Mortgage aims to offer competitive rates to borrowers, ensuring they have access to competitive loan terms. | Specific qualification requirements. Alongside the minimum credit score, Rocket Mortgage has additional qualification criteria such as income verification, debt-to-income ratio, and employment history. Meeting these requirements may present challenges for some borrowers. |
District Lending Mortgage
District Lending is an Arizona-based mortgage broker founded in 2018. It offers both conforming and non-conforming loan options.
While the broker's website lacks explicit details regarding eligibility criteria and conditions, it advertises competitive rates, possibly attributed to its fully online platform. The loan options encompass both conforming and non-conforming loans. Non-conventional mortgage choices include jumbo loans for properties surpassing standard value limits and FHA loans featuring lower down payments (typically 3.5%) but with lower limits compared to conforming loans.
District Lending offers VA-backed loans catering to both the purchase and refinancing needs of current and former service members. However, it does not include USDA loans for rural properties in its catalog. Although minimum eligibility criteria are not specified, the online calculator indicates a starting FICO score requirement of 640.
| Pros: | Cons: |
|---|---|
| Competitive Rates. District Lending advertises low percentages, which could potentially result in favorable interest rates for borrowers. | Limited Information. The lack of clear details on the broker's website regarding eligibility criteria and conditions may make it challenging for borrowers to fully understand the terms of the mortgage. |
| Online Convenience. Being a fully online mortgage broker, District Lending offers the convenience of managing the mortgage process digitally, potentially saving time and effort for borrowers. | Unclear Eligibility Requirements. The minimum eligibility criteria are not explicitly stated, making it difficult to determine if borrowers meet the lender's requirements. |
| Non-Conventional Options. District Lending provides access to non-conventional loan options such as jumbo loans and FHA loans, which can be beneficial for borrowers seeking larger loan amounts or lower down payments. | Limited Program Offerings. District Lending does not offer USDA loans for rural properties, which may limit options for borrowers seeking financing for such properties. |
| Limited Track Record. As a relatively new company founded in 2018, District Lending may have a limited track record or customer reviews available, making it harder to assess their reliability and customer satisfaction. |
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
| Criteria | Amount, $ |
|---|---|
| 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
When considering a mortgage loan, it is important to recognize that it involves a significant commitment lasting from 15 to 30 years. Therefore, it is essential to carefully evaluate your options before finalizing an agreement with a specific lender. There are several key factors to consider when selecting a lending institution.
Type of Lender
In general, there are two main options to consider when seeking a mortgage: traditional banks and online mortgage lenders. Banks often provide competitive interest rates, but they typically have rigorous credit check processes. The approval time for bank loans is usually longer, and the eligibility criteria can be more stringent. On the other hand, online lenders offer faster processing times and more lenient requirements for homebuyers.
APR and Fees
Like any other loan, a mortgage comes with associated costs beyond the interest rate. These additional expenses may include origination fees, mortgage insurance fees, closing costs, and more. Currently, the average mortgage rate for a fixed-rate 30-year loan in Arizona is 6.58%. It's important to consider these factors when evaluating the overall cost of a mortgage.
Terms and Conditions
In this context, it is important to take into account the minimum down payment requirement, which can range from 0% to 20% depending on factors such as the loan type and your current situation (military, employed, self-employed, etc.). Another significant factor to consider is the loan term, which refers to the total length of the loan. Common options include 15-year and 30-year terms.
What Mortgage Lender is the best in Arizona?
It is challenging to provide a definitive answer to this question as the list of reliable mortgage lenders in Arizona is extensive. The choice ultimately depends on various factors. One notable industry leader is Rocket Mortgage, which recorded a loan volume of $11.5 billion in 2021. To make an informed decision, it is advisable to consult our list of recommended lenders.
First-Time Homebuyer Programs in Arizona
Purchasing a home for the first time can be a daunting task. Fortunately, Arizona residents have access to various government programs designed to enhance mortgage affordability.
- Federal Housing Administration loan program. Under this program, buyers receive insurance from the federal government, with the insurance fee included in the overall loan cost. In return, homebuyers enjoy significant benefits, including a low-interest rate and minimal credit requirements. This means that even with a FICO score as low as 500 and a debt-to-income ratio of just 50%, individuals can still qualify.
- USDA loan program. Geared towards those residing in rural areas, this program offers mortgage loans with a zero down payment. However, participants must ensure that their annual income does not exceed 115% of the average income in their region.
- VA loan programs. Insured by the Department of Veteran Affairs, these mortgage options are exclusively available to former military personnel and their spouses, providing them with special benefits and opportunities.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility and assures home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals are required to provide supporting documents demonstrating their financial capacity. Typically, this includes earning statements, account statements, a W2 form, or alternative proof of income for a minimum of two years. Additionally, filling out the Uniform Residential Loan Application form is necessary to complete the process.