Arizona Home Loans

When you purchase a home in Arizona, you can chose between an adjustable rate mortgage, a fixed-rate mortgage, and a second mortgage. An adjustable-rate mortgage comes with a low monthly payment and a low interest rate at the start, but is also subject to a severe rate increase later on.

A fixed-rate mortgage has a set payment amount, interest rate, and date of maturity. It is usually paid off in 30 years, but 15-year programs with a lower rate are also available. Second mortgages, which are intended for those who already own their home, are provided as a line of credit with a variable interest rate or a fixed-rate loan.

What you can do

Once you have a mortgage, you can refinance in order to lower your monthly payment with a later maturity date or lower interest rate, consolidate your debt, or raise cash. The last two options are possible if you have equity in the property because its value has increased or because the balance of your first mortgage has decreased.

In Arizona, mortgage brokers must be licensed, pass a written examination, and have at least three years’ experience, and you will want to contact the state’s Department of Housing to see if the lender you select is properly accredited. Remember that appropriate lenders may also include online mortgage companies, banks, and credit unions. Both the state and federal government offer assistance programs for veterans, the disabled, first-time home buyers, single parents, and those living in rural areas. Senior citizens can access legal assistance, discounted utility rates, and a counseling agency for help with renting or buying a home.

To get the best interest rate when you apply for an Arizona mortgage, you will need to do some comparison shopping that will involve the following steps:

● Research your credit rating and clear up any problems that might keep you from being approved.
● Review the prevailing market rate.
● To see how various loan structures work, calculate amortization tables and loan payments.
● When you are ready, you can choose a realtor listed in an Arizona broker directory and submit your loan application.

Note that a mortgage lender’s advertised interest rate is intended for borrowers with an outstanding credit rating, and if you do not fall into that category, you will want to visit an appropriate website and review Arizona mortgage rates by loan type and credit quality.