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Mortgage rates in Arizona
Interest rates on a 30-year $300,000 conventional mortgage start at around 3.500%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.625% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Arizona home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Arizona by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
|Credit score||$200,000 mortgage||$300,000 mortgage||$400,000 mortgage||$500,000 mortgage|
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your Arizona home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
|Loan type||$200,000 mortgage||$300,000 mortgage||$400,000 mortgage||$500,000 mortgage|
|15-year FHA||3.000%||2.875%||Not eligible||Not eligible|
|30-year FHA||3.500%||3.500%||Not eligible||Not eligible|
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
To secure the lowest interest rate for your home loan, shine up your credit and weigh full costs when shopping for a lender:
- Compare mortgage types. Look for loans with rates and terms that you’re eligible for. For instance, conventional loans generally come with higher interest rates than government-insured options, but fewer borrower and property restrictions.
- Boost your borrowing potential. Pay down as much of your existing debt as you can to improve your eligibility for the strongest rates.
- Consider closing costs. Lenders charge fees that range from 1.15% to 1.74% of your home’s purchase price to close on a loan in Arizona.
Home values in Arizona are forecast to increase
Home values in Arizona have increased rapidly over the past year, rising by over 25% on average according to Zillow. This trend is expected to continue through June 2022, albeit more slowly. Home values are forecast to increase on average by 11% by this time next year.
Homeowners in Show Low and Phoenix will see the biggest jump, with projected increases of 18.7% and 18%, respectively. The town of Colorado City will see the smallest growth in home values at around 0.8%.
Mortgage rates are still hovering around some of the lowest they’ve been in over 30 years. So although housing prices in Arizona have gone up over the last several years, current rates are helping keep payments lower.
5 fast facts about the Arizona housing market
If you’re shopping around for a mortgage and Arizona is in your sights, consider these facts:
- Phoenix recently demonstrated record-breaking home prices. Once again, Phoenix took the top spot with the highest year-over-year gains in home prices following the release of the May 2021 S&P CoreLogic Case-Shiller 20-City Composite Home Price Index. Phoenix home prices increased by 25.9% since May 2020, marking the longest a city has held the record for fastest annual growth since Portland first set the record in 1992.
- Arizona home prices are higher than the national median. The median sale price for houses in Arizona continues to rise. As of June 2021, the median home price in Arizona was $399,900. This is $25,000 more than the national median sale price of $374,900.
- Despite its high property values, Arizona’s property tax rate is among the lowest. With a property tax rate of 0.66%, Arizona comes in well below the national average of 1.08%.
- All-cash purchases have increased. According to new national data from Redfin, nearly a third of all home purchases in Phoenix between January 2021 and April 2021 were made with cash, up from 26.1% in 2020.
- Arizona Housing offers a down payment assistance program. Qualified homebuyers purchasing a home in 26 targeted zip codes in 12 cities in Arizona have access to the Pathway to Purchase (P2P) Down Payment Assistance Program. This program offers a 30-year fixed-rate mortgage with a five-year forgivable Down Payment Assistance second mortgage equal to 10% of the purchase price.
Mortgage rates in Arizona vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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