Arizona Mortgage Payment Calculator
What down payment is required to buy a home in Arizona?
The minimum down payment required varies depending on the loan program that you choose.
Conventional loans typically require a 5% down payment. However, there are flexible conventional loans programs designed for to help Arizona first time home buyers that only require 3% down.
FHA loans have a minimum down payment requirement of 3.5%.
VA loans and USDA loans do not typically require a down payment.
What does an Arizona mortgage payment calculation consist of?
Principal and Interest: Principal is the part of your monthly mortgage payment that pays down the balance of the loan. Interest is the cost of borrowing the money paid to the lender.
Homeowner’s Insurance: When you buy your home, part of your monthly payment will include payments to collect the cost of the homeowner’s insurance (also known as hazard insurance) policy. Homeowner’s insurance covers damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people.
In Arizona, an annual policy usually runs between $500 and $800. Our Arizona mortgage calculator uses the average of that range for the calculation.
Property Taxes: As a home owner, you will pay property taxes on your home. In Arizona, it is usually paid through the county assessor where the property is located. Property taxes are collected twice a year (October and March). When you make your monthly mortgage payment, it will include the estimated monthly amount needed to collect the amount needed to pay your taxes when they are due. For example, if your half-year tax payment is $600 then your monthly mortgage payments should be $100.
Your exact tax rate on your home depends on where your home is located. The tax rate for each home is comprised of the state, county, municipal, school, and special district rates. The average overall tax rate on homes in Arizona is typically somewhere between .85% and 1.5% of market value. This is an estimated amount because property taxes are levied based on assessed value. Our Arizona mortgage calculator uses the average of the range stated above for the calculation.
Mortgage Insurance: Depending on your loan type and scenario, you may have to pay monthly mortgage insurance on your loan. Mortgage insurance, or private mortgage insurance (PMI), is a type of insurance that is protects the lender if the borrower stops making payments on the loan and the home ends up in foreclosure. Mortgage insurance is common on conventional loans with less than a 20% down payment and on FHA loans. The current fha mortgage insurance rate is .85% for the annual premium. Our Arizona mortgage calculator uses that rate for our calculation.