COUNTY |
|
|
Arizona
Mortgage Calculator
Welcome to the Arizona Mortgage Calculator page by New American Funding, where we provide a powerful tool to navigate the world of mortgages in the Grand Canyon State. Whether you're a first-time homebuyer or considering refinancing, our Arizona Mortgage Calculator is designed to offer valuable assistance tailored specifically to your state.
Using this calculator, you can understand your financial commitments, estimate your monthly mortgage payments, explore different interest rates, and factor in important elements such as property taxes, private mortgage insurance, and closing costs.
This analytical tool empowers you to make informed decisions about your Arizona mortgage, ensuring you have the knowledge and confidence to achieve your homeownership goals. Count on New American Funding to guide you on your path to success in the Arizona real estate market. Also, see Arizona FHA Loan for more details and requirements for a home in the state. If you are looking to move to Arizona, see the First-time Homebuyer Guide for Arizona.
Let's Calculate Your Arizona Mortgage Payment
FIXED
We're working on getting the best quote possible.
We'll be in touch with you soon!
Homes You May Like
Arizona Home and Mortgage
Stats to Know
County | Avg. Home Price | Avg. Days on Market |
---|
Source of Info PropertyPath
Arizona Housing Market Overview
According to the Census Bureau, Arizona is experiencing significant population growth and ranks among the fastest-growing states in the U.S. from 2010 to 2020. As of 2023, the state's population stands at 7,359,197. Arizona has a diverse population, including 22 federally recognized Native American tribes, highlighting its rich heritage. Its warm climate makes it a popular retirement destination and offers numerous educational opportunities with many universities and colleges. With a thriving population, cultural diversity, and an attractive lifestyle, Arizona is an appealing place to call home.
It is important to note that housing market conditions can vary significantly across different locations throughout the state. The state's major cities, such as Phoenix, Tucson, and Mesa, experience high housing demand, resulting in increased competition and prices. Each area, including these cities, has its own distinct housing market. For instance, as of June 2023, the median listed home value in Phoenix was $424,153, while in Tucson, it was approximately $398,484. In Sierra Vista, a smaller city, the average home value was around $280,000. These figures demonstrate the wide range of housing prices and affordability across different parts of the state.
The median number of days homes stayed on the market, known as DOM (Days on Market) was 47 days as of June 2023. This is above the national average and is longer than this time last year. How long a home stays on the market indicates the competitive level of the housing market. When homes stay on the market longer, it gives buyers more time to negotiate for the home they want as well as more control over the process.
Arizona Mortgage Rates
Mortgage rates change daily and are affected by numerous factors. These can include the current state of the economy, the geographic location of your property, and changes in government laws and regulations. Keeping track of the current rates in your area can help you make more informed decisions regarding your mortgage journey.
Factors in Your Arizona Mortgage Payment
Property Taxes
Arizona has relatively low rates when it comes to property taxes, with an average effective rate of 0.72% which is well below the 0.99% national average. Arizona follows a system called “limited property value” which means that the property values are assessed for tax purposes but there are limitations on how much property taxes can increase each year. Additionally, Arizona offers property tax exemptions for seniors, disabled individuals, veterans, and qualified organizations. These exemptions can help reduce property tax burdens for eligible individuals or properties.
The average effective property tax rate in Arizona represents the percentage of the appraised value of a home that homeowners are required to pay in property taxes. Arizona's specific property tax rates vary by county and can include additional taxes levied by local or special school districts. Each county has an assessor's office responsible for determining property values and a treasurer's office that collects property taxes.
Private Mortgage Insurance
Our Arizona mortgage calculator indicates that borrowers who make a down payment of less than 20% on a Conventional loan may be required to obtain private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. The cost of PMI premiums can vary significantly, ranging from 0.5% to nearly 6% of the loan principal. This variation depends on factors such as the amount of the down payment, the type of loan, the loan term, and the borrower's credit score.
Borrowers need to consider the potential impact of PMI on their overall mortgage expenses. While PMI can increase monthly payments, it may be canceled under specific conditions, such as reaching a certain loan-to-value ratio or making additional principal payments. To better understand their specific PMI requirements and options, borrowers are encouraged to consult with their Loan Officer. By doing so, they can make informed decisions and develop strategies to manage PMI effectively, ensuring a smooth and successful homeownership journey.
Closing Costs
When purchasing a home in Arizona, it is essential to consider the specific closing costs associated with the state. Closing costs are extra fees and expenses that are required when purchasing a home. These are in addition to the price of the property itself and usually include things like a property appraisal, lender fees, insurance, and the cost of a credit report.
Arizona falls in the middle range among all 50 states and Washington, D.C. when it comes to closing costs. On average, closing costs in Arizona amount to approximately 1% to 3% of the home's sales price. Arizona also splits the responsibility of closing costs between the buyer and the seller, so be sure to check with your Loan Officer to find out what exact payments will be expected of you.
Considering the closing costs and associated fees can help you make informed financial decisions and effectively plan for your dream of homeownership in the Grand Canyon State.
Typical Costs When Buying A Home in Arizona
Homeowners Insurance
While homeowners insurance is not required by law in Arizona, mortgage lenders usually require borrowers to have it in order to qualify for a home loan. This is because the home is used as collateral against the loan, putting lenders at risk if something happens to the property. In Arizona, the typical cost of homeowners insurance averages around $2,242, which is $902 lower than the national average.
Insurance rates vary according to factors like geographic location and the buyer’s credit score, so what a homebuyer pays in Phoenix will likely differ from what they pay in Flagstaff. Likewise, people with different credit scores are also likely to pay different amounts. A higher credit score can mean lower insurance rates, while a lower score can mean a buyer will pay more for insurance.
Arizona has its own unique set of natural disaster risks compared to other states. While some states may face frequent hurricanes or tornadoes, Arizona is more prone to wildfires, monsoons, and flash floods. Arizona insurance policies may have specific provisions and exclusions related to these risks, so it's important to understand the coverage for these events.
Home Inspection
Homeowners can expect to pay approximately $300-$500 for a home inspection in Arizona, depending on the specific services required. Additional fees may apply for certain services. Though it is not always required by your lender, a home inspection is recommended.
It is an important tool to help buyers understand the quality of the home they are purchasing and can help you plan or negotiate any needed repairs. Getting a home inspection also allows borrowers to gauge the accuracy of the seller’s asking price, giving them a platform to renegotiate if there are any issues that might be costly to fix.
Radon Map
While the cost of a radon test or mitigation system is not typically included in the standard closing costs, it is an important consideration for buyers concerned about radon gas levels in their prospective homes. Buyers in Arizona may want to include radon testing and mitigation as part of their home inspection process, considering the potential costs of these additional services. By addressing radon concerns early on, buyers can make informed decisions and ensure the safety and well-being of their future homes.
Home Warranty
Home warranties are service contracts that cover repairs or replacements of major home systems and appliances. While home warranties are not typically included as part of standard closing costs in Arizona, they are an option buyers can consider during home buying. The cost of a home warranty can vary depending on factors such as the coverage level and duration.
Including a home warranty in the closing costs would require negotiation and agreement between the buyer and the seller. It's important for buyers in Arizona to carefully review the terms and coverage of the home warranty before making a decision. Obtaining a home warranty could be beneficial as it can provide financial protection against unexpected repairs or replacements of covered items in the home.
Title Insurance Premium
Lender’s title insurance is a common requirement by lenders for homebuyers. Some homebuyers also opt to pay for owner’s title insurance as well, since this will protect them personally against issues arising from title conflicts. Owner’s title insurance protects the homebuyer in case of title issues such as conflicting ownership claims of the property, outstanding lawsuits regarding the property, and fraud.
Lender’s title insurance protects the lender in a similar way. If the seller does not have the legal right to transfer the title to the property, the lender will be protected against potential financial losses. The title insurance premiums for both types will depend on factors like your geographic location and the price of the property itself.
How To Calculate Your Arizona Mortgage Payment
Calculating your mortgage payments may seem complicated at first. There are a lot of factors to consider when you start trying to figure out your mortgage. Each person has their own unique circumstances and financial goals to think about as you plan for your future.
Our mortgage calculator can simplify the process and help you take some of the guesswork out of planning for your dream home. Just input the necessary information into our calculator and you’ll be able to see various options. This information includes the home price, down payment amount, the ZIP code of the property, your credit score, and mortgage rate. There are also advanced options where you can compare various loan types and terms and factor in extra costs like home insurance.
Arizona Jobs and Economic Factors
Arizona's economy is thriving, marked by a low unemployment rate of 3.4% and strong job growth across various sectors. With over 1,200 companies, the aerospace and defense sector is a significant contributor alongside industry-leading manufacturers such as Intel, Microchip, Honeywell, Raytheon, Blue Yonder, Frito Lay, and Insight. The average income of around $84,380 demonstrates the prosperity of the state's economy, reflecting the myriad of opportunities available.
Arizona is experiencing a remarkable increase in its bioscience and healthcare industry, establishing itself as one of the fastest-growing sectors in the United States. Arizona has also become a hub for the semiconductor industry, experiencing remarkable economic growth and constantly adding new jobs. The continuous success and investments in these industries further propel Arizona's economy, solidifying its technology and innovation leader position.
State economies are affected by the same patterns as national ones. These can include changes in laws, international trade relations, and shifts in government. However, Arizona's thriving economy, supported by diverse sectors, including aerospace, defense, bioscience, healthcare, and semiconductors, showcases its position as a prosperous state with abundant opportunities and a commitment to technological advancement.
Arizona First-Time Homebuyer Resources
- First-Time Home Buyer Guide
- First-Time Home Buyer Loans
- Pathway Program – Down payment assistance