Buying a home in ArizonaWhen you find a property you like, Arizona law states that the seller has a legal duty to tell the buyer any important facts that might adversely affect the value of the property. The most typical method for disclosing this information is by completing a written disclosure statement and giving it to the buyer. Arizona allows professionals other than attorneys to draft legally binding documents, and in this respect is one of only a handful of states to do so. The real estate agent, along with the title examiner and the escrow officer, replace the duties of attorneys in many Arizona transactions. Arizona is what is known as a "Title State," meaning that mortgages are exceedingly rare. Instead, the buyer will give a promissory note and deed of trust to the lender. This is then used as collateral for the loan. Of course, such arrangements are very similar to mortgages — except in name. This also means that the buyer doesn’t even have to be present for the closing of the property. Everything can be sorted by phone, email, and registered US Mail.
Refinancing in ArizonaMost Arizonans can refinance their mortgages in the usual way. In other words, there are few state-specific laws or regulations to stop them from doing the same as people in most other states. Your first step is to see whether a refinance makes sound economic sense. There are going to be some costs involved in the process, and you need to be sure those won’t outweigh the benefits you’ll get from your lower mortgage rate and monthly payment. Use The Mortgage Reports’ refinance calculator to model your options. Some lenders will offer you "no-cost" refinances. But these involve your paying a higher interest rate. So, in effect, you’re spreading your payment of those costs over the life of your loan. You can multiply the monthly cost of that higher rate by 360 (for a 30-year mortgage) to see just how expensive your "no-cost" option is. Again, the mortgage calculator can do the hard work. Of course, if you need a lump sum urgently, you may not care too much about costs. But cash-out refinances can lead to a financial setback if you undertake them too often. So think through the long-term implications. And reserve this tactic for when you really need money. Otherwise, a home equity line of credit might be a better solution due to lower fees.
First time home buyer down payment assistance in ArizonaFirst time home buyers can get financial assistance through the Arizona Department of Housing. This agency offers a couple down payment assistance programs to help first time home buyers in Arizona get their foot in the door.
- Pathway to Purchase program: For buyers in targeted areas, offers a 30-year loan. Plus, assistance for down payment and closing costs worth up to 10% of the home’s purchase price, given as a forgivable loan with zero interest
- Home Plus program: Available statewide, provides a 30-year loan with discount mortgage insurance, and down payment assistance up to 5% of the home’s purchase price
Mortgage calculator: ArizonaCalculate your mortgage payment for a home in Arizona. Start by finding your current mortgage rate using the filters above. Then enter your rate, home price, down payment, and loan term into the mortgage calculator below to estimate your monthly payment.
Mortgage companies in AZThe best way to find a low mortgage rate is by comparing offers from at least three lenders. You can start by checking out some of the biggest mortgage companies in Arizona. The top five AZ lenders are Wells Fargo, Quicken Loans, Chase Bank, NOVA Home Loans, and Bank of America, according to ValuePenguin. To see how the big-name mortgage companies stack up, see our comparison reviews:
- The Best Mortgage Companies for 2023
- The Best Refinance Companies for 2023
- Individual Mortgage Lender Reviews