Arizona Mortgage Rates

August 2, 2015 02:17 AM Eastern

Refinance rates now in PHOENIX, AZ [Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Looking at buying or refinancing an Arizona home? You're in the right place. LendingTree lenders are great sources of mortgage financing in the Grand Canyon State.

Arizona Mortgage Rates

If you currently live outside of Arizona, mortgage rates you may have seen offered in your locale might be different. The economy in each state can affect  its mortgage rates and so does competition among lenders. Each state has its own laws governing mortgage rates that lenders can offer. In Arizona lenders  are regulated by the Arizona Department of Financial Institutions.

Buying a Home in Arizona

Arizona is one state where buying a home means finding your place in the sun. Home prices have been on the rise again in Arizona since early 2012 and could continue to appreciate. Forecasts are anywhere from 5.65 percent to as much  as 10.35 percent through this year, the highest forecast for any state.

Homes are affordable in Arizona for about 80 percent of households earning the median income in their respective locales with the exception of Flagstaff  and Prescott. In Phoenix, for example, the median sales price of a home is $178,000, and 76.2 percent of  homes in that metro region are affordable for median income households.

Closing costs for buying a home in Arizona are lower than the median nationwide. Arizona’s median closing costs are $2,372, ranking it 29th  among all 50 states and Washington, D.C.

Housing assistance may be available from the following programs for those who qualify:

  • Arizona Affiliates of Habitat for Humanity  – homes built and rehabilitated by volunteer labor
  • U.S. Department of Agriculture Rural Housing  – rural assistance programs for home buyers
  • State and local community contacts  – a list of organizations that may offer homeownership assistance

FHA Mortgages in Arizona

Lending limits for Federal Housing Authority (FHA) mortgages in Arizona depend on the location of the home. High-cost areas like Flagstaff, Phoenix and  Prescott have higher limits while the rest of the state is subject to the standard limit, $271,050 for FHA-insured loans.

VA Mortgage Limits

The VA doesn’t limit mortgage amounts, but it does limit the amount of the loan guarantee. Most lenders restrict loans to four times the amount of the  guarantee, which means most Arizona lenders cap VA mortgages at $417,000.