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Arizona Mortgage Rates

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Use SmartAsset's mortgage comparison tool to compare mortgage rates from the top banks and find the one that best suits your needs.

Overview of Arizona Mortgages

Home to the Grand Canyon and other iconic sites of the American Southwest, Arizona is a diverse state with a growing population. In recent years, Arizona mortgage rates have tended to be slightly above the national average. No Arizona counties have conforming loan limits above the baseline $453,100 limit.

Today's Mortgage Rates in Arizona

Product Today Last Week Change
30 year fixed 4.50% 4.75% -0.25
15 year fixed 3.95% 4.28% -0.33
5/1 ARM 3.71% 4.29% -0.58
30 yr fixed mtg refi 4.73% 4.73% -0.00
15 yr fixed mtg refi 4.23% 4.27% -0.04
7/1 ARM refi 4.48% 4.41% +0.07
15 yr jumbo fixed mtg refi 4.21% 4.15% +0.05

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Arizona Mortgage Rates Quick Facts
  • Median Home Value: $239,200 (Zillow)
  • Loan Funding Rate: 61.7% (CFPB)
  • Average Mortgage Rate: 4.00% (Freddie Mac)
  • Homeownership Rate: 64.5% (St. Louis Fed)
  • Median Monthly Homeownership Costs: $1,332 (U.S. Census Bureau)

Historical Mortgage Rates in Arizona

The housing crisis hit Arizona’s real estate market hard, but it’s rebounded in the years since. It’s one of the fastest-growing states in the nation and there is a robust demand for housing. Arizona’s annual average mortgage rates have been the same or slightly higher than the national average since 1997.

Arizona Historic Mortgage Rates

YearArizona RateU.S. Rate
198214.3414.73
198312.0812.26
198412.0411.99
198510.9811.17
19869.699.79
19878.858.95
19888.928.98
19899.829.81
19909.959.74
19919.189.07
19927.837.83
19936.986.93
19947.047.31
19957.297.69
19967.547.58
19977.567.52
19987.056.97
19997.247.14
20007.997.86
20017.006.94
20026.516.44
20035.725.67
20045.735.68
20055.865.85
20066.576.54
20076.466.42
20086.126.06
20095.155.05
20104.814.81
20114.634.56
20123.733.65
20133.853.84
20144.184.13
20153.913.88
20163.763.73

Arizona Mortgages Overview

If you’re shopping for a mortgage in Arizona you should be able to find a relative bargain, depending on what kind of home you need. After the state’s real estate bubble burst, prices dropped significantly in many parts of Arizona. That makes it easier for first-time homebuyers to break into the housing market in Arizona and helps shorten the time needed to save up for a down payment. That also means your monthly mortgage payments will likely be lower than if you bought in many other areas of the country.

There are no Arizona counties that have a conforming loan limit over the standard $453,100 limit. That’s an indication that home prices in Arizona are on the low side. In expensive parts of the country where home prices are high, the conforming loan limit can be as high as $679,650.

A conforming loan, is a loan that can be sold on the secondary mortgage market. A loan that exceeds the conforming loan limit is considered a jumbo loan, and will generally come with a higher interest rate.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Apache$453,100$294,515
Cochise$453,100$294,515
Coconino$453,100$294,515
Gila$453,100$294,515
Graham$453,100$294,515
Greenlee$453,100$294,515
La Paz$453,100$294,515
Maricopa$453,100$294,515
Mohave$453,100$294,515
Navajo$453,100$294,515
Pima$453,100$294,515
Pinal$453,100$294,515
Santa Cruz$453,100$294,515
Yavapai$453,100$294,515
Yuma$453,100$294,515

The Arizona housing market includes a high number of foreclosure properties. If you’re comfortable buying a foreclosure, you may be able to get a great deal on a home in Arizona. However, you’ll need to be prepared to pounce on a listing that appeals to you. If you wait too long to make an offer, the home will probably be snapped up by another buyer. Foreclosed homes move quickly on the Arizona mortgage market.

In general, buyers who can offer cash will be given precedence over those who need to finance their home purchase. And because time is tight on the foreclosure market, there probably won’t be a back-and-forth negotiation, which means a low-ball offer can backfire. Rather than reach out to you and negotiate, the bank may simply give the home to someone else. It’s also important to pay attention to the details of foreclosure listings. Some homes are sold as is, which means that any needed repairs resulting from the home inspection will be the financial responsibility of the buyer, not the bank.

30-Year Fixed Mortgage Rates in Arizona

Unless you’re gifted a home or you pay cash for your home (which is easier to do when it’s a low-price foreclosure), you’ll likely have to get a mortgage to buy a home in Arizona. Most homebuyers opt for a 30-year fixed-rate mortgage. It’s the old standby of mortgages. You have plenty of time - 30 years - to pay back the loan and your interest rate won’t change unless you decide to refinance your mortgage.

The average Arizona mortgage rate for fixed-rate 30-year mortgages is 4.16%.

Arizona Jumbo Loan Rates

In most counties, a home loan that’s $453,100 or less is a conforming loan. A mortgage that’s over the conforming loan limit in a given county is considered a jumbo loan. Jumbo loans have higher interest rates than conforming, also known as conventional, loans. The higher interest rates that come with jumbo loans are another good reason to buy a home that’s well within your budget so you don’t have to borrow such a hefty sum.

The average Arizona jumbo loan rate is 4.62%.

Arizona ARM Loan Rates

Adjustable-rate mortgages (ARMs) come with an introductory interest rate that’s often lower than the going rate for fixed-rate mortgages. So, if you’re planning to buy a home and live there for a short time, the ARM can be a good option because you can take advantage of the low introductory rate. They’re more popular with people who plan to flip the home they’re buying, or who plan to move on in a few years.

The risk, however, is that you might still be in the home when the interest rate adjusts and your monthly mortgage payments increase after the introductory period ends. An ARM that becomes too expensive is a common reason people become delinquent on their mortgage and, in some cases, face foreclosure. Before you commit to an ARM, it’s important to be clear on how long the introductory period will last (generally between one and 10 years) and what the maximum allowed interest rate increase is for the life of the loan.

The average rate for an ARM in Arizona is 3.52%.

Arizona Mortgage Resources

SmartAsset compiled a list of resources to help turn your Arizona homebuying dreams into reality. The Arizona Department of Housing (ADOH) has resources that can help you with your mortgage. One resource is the “HOME Plus” Home Loan Program. The program offers 30-year fixed-rate mortgages at low rates with assistance that can be put toward closing costs or your down payment. Depending on the loan type you choose (Fannie Mae, Freddie Mac, FHA, USDA, VA) and your credit score, the down payment assistance can be between 2% and 5% of the loan amount.

The program puts limits on the loan-to-value ratio of the homes you can buy. That ratio is the amount of the mortgage divided by the sales price. It can’t be lower than 96.5%. There are also geographical restrictions. The program is not available in Pima County, and the FHA, USDA and VA versions of the program aren’t available in Maricopa or Pima County. To take advantage of the program you must work with a HOME Plus participating lender.

Available Resources

Resource Problem or Issue Who Qualifies Website
Arizona Department of Housing Offers down payment assistance, 30-year fixed-rate mortgages at low rates and mortgage credit certificates for those who refinance. Homebuyers purchasing primary residences with a purchase price equal to or below $371,936. Minimum credit score is 640 to 660 and your annual income cannot exceed $92,984. https://housing.az.gov/finance-authority/home-plus
Save Our Home AZ Program Offers principal reduction assistance, mortgage subsidy assistance, second lien elimination and short sale assistance. Homeowners with owner occupied, primary residences. https://housing.az.gov/save-our-home
Home Affordable Refinance Program Refinancing. Single family homes and condos that fit within lending loan limits. http://www.harp.gov/
HUD Approved Housing Counseling Agencies Mortgage delinquency and resolution counseling; pre-purchase homebuyer education; rental housing counseling; reverse mortgage counseling. Homebuyers and owners who meet specific program qualifications. http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=AZ

If you’re already a homeowner and you’re behind on your mortgage payments or at risk of foreclosure, you can call the state’s toll-free line for free counseling. To help you lower your monthly payments, you can apply for the federal government’s Home Affordable Refinance Program through a participating Arizona lender.

You can also apply for the Save Our Home AZ Program, which offers principal reduction assistance, monthly mortgage subsidy assistance for under- and unemployed Arizonans, second-lien elimination and short-sale assistance to qualified homeowners in the state. The program provides the assistance directly to your lender on your behalf, so your lender must agree to participate. If you need help navigating the above programs or getting ready for homeownership you can contact one of the HUD-approved housing counselors in Arizona.

Arizona Mortgage Taxes

In Arizona, you can deduct your mortgage interest from your state income taxes, even if you didn’t itemize your deductions and deduct your mortgage interest when you filled out your federal income tax return. If you did itemize and deduct your mortgage interest on your federal return you can get a “double deduction” when you fill out your state income tax return.

If you sell your Arizona home you won’t pay real estate transfer taxes but you will pay a flat fee of $2 per deed or contract.

Arizona Mortgage Refinance

When it’s time to refinance your Arizona mortgage you don’t have to go with the same lender you used the first time around. Feel free to shop around for a better deal. The same non-profit, HUD-approved counselors who can help Arizonans with a home purchase can also help Arizonans navigate the refinance process. Don’t forget that closing costs are due on completion of a refinance so you’ll need to budget for this extra expense.

Best Places To Get A Mortgage

SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.

Worst
Better
Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment

Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.

To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Sources: Mortgage Bankers Association, US Census Bureau 2016 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset