Arizona Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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When you want to start your homebuying journey, it’s best to look at your personal finances and Arizona's tax rates. MoneyGeek found that the state’s average annual property tax is $1,446 while its real estate tax rate is 0.66%.
Finances are one of the main factors that individuals consider when buying a house. We found that a mortgage in Arizona is $43 cheaper than the national average. Meanwhile, the median home price in the state is $257,600.
However, the cost of your monthly mortgage payment is based on factors like your loan terms, down payment, interest rate and your home’s value. Other expenses include insurance, homeowners association fees and more. Using our Arizona mortgage calculator, you can see how much you’ll need to budget. We also break down how you can lower your monthly expenses.
Start Here: Plug In Your Mortgage Factors
Using MoneyGeek’s Arizona mortgage calculator, you can get a holistic estimate of your mortgage payment per month. We also created a guide explaining each factor.
Why and How to Use Our Mortgage Calculator
MoneyGeek’s Arizona mortgage calculator can help you compute how much you need to set aside for your home loan. For example, the median value of a home in Arizona is $257,600. Depending on if your home costs more or less than the median value, properly budgeting your finances will ensure that you can cover your payments.
To use MoneyGeek’s Arizona mortgage calculator, you’ll need to gather information about how much you’re comfortable with spending on a loan, interest rates, the home loan’s cost and the type of mortgage you’ll get. MoneyGeek listed 12 homeownership factors below. Understanding each factor will help find potential savings.
Home Price:
Enter the maximum price you’re comfortable spending on a home or the loan amount you want to pay.
Down Payment:
Generally, home loans require an initial up-front payment. You can enter a percentage or dollar amount.
Interest Rate:
Enter the interest rate of your loan. MoneyGeek compiled daily mortgage rate reports from mortgage lenders.
Loan Terms:
You’re free to choose your loan length, but the most common loan terms are 15 or 30 years.
Payments per Year:
Monthly payments or 12 payments per year is the most common term.
Property Tax:
Arizona has an average annual property tax of $1,446, which you can place in “other fees.”
HOA Fees:
Properties with a homeowner’s association (HOA) might require homeowners to pay an annual or monthly fee.
Principal & Interest:
This refers to the total amount of how much you borrowed and how much you have to pay the lender for the money borrowed.
Monthly Payment:
The total homeowner-related expenses per month, such as HOA dues, property taxes and principal and interest.
Principal Payment:
The portion of your monthly payment that is deducted from the total balance.
Interest Payment:
How much the lender charges for money borrowed for your home loan.
Total Cost with Interest:
The total cost you pay for your principal balance with interest and relevant factors.
While Arizona homeowners spend an average of $1,116 on monthly mortgage payments, how much you have to pay will vary based on your unique situation. Your location, type of loan, lender and home price influence your mortgage. Luckily, there are ways to reduce your monthly payment, including:
- Purchase a less expensive house. You need to take out a smaller loan if you opt for a less expensive house. As a result, your monthly mortgage is cheaper.
- Choose a different location. In Arizona, the real estate tax is 0.66%, while the annual property tax is $1,446. Consider this when you’re shopping for a home.
- Get a lower interest rate. Generally, your interest rates can decrease if you pay a larger down payment.
- Extend your loan terms. If a loan term is too expensive, you can extend it to a more comfortable timeframe like a 30-year term. You could pay more interest, but your monthly payments will likely be more manageable.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
Since homebuying can be overwhelming at times, MoneyGeek can guide you through the process. We compiled tips to help you on your mortgage journey.
- Shop & Compare Rates - We recommend shopping around and comparing mortgage rates in Arizona so that you can find the best deal for you.
- Not Ready to Buy? - If you’re deciding whether to rent or buy a house, evaluate your unique situation.
- Learn More - In Arizona, there are FHA loans, VA home loans and reverse mortgages, but the best mortgage loan depends on what you need.
Frequently Asked Questions About Mortgages in Arizona
It depends on how much you’re willing to spend. Lenders generally consider a home to be affordable if your debt-to-income (DTI) ratio is 43% or lower. Evaluate your budget to determine what will work for you.
As of 2020, the average outstanding mortgage in Arizona is $202,959.
Some mortgages have a required rate of around 5% for a down payment. But, if you’re getting a government-supported program provided by the VA and USDA, a down payment might not be required.
Borrowers are required to have private mortgage insurance (PMI) if they have a conventional loan and put less than 20% down on the home.
In Arizona, the average annual property tax is $1,446. Property taxes impact how much you need to pay for your monthly mortgage.
Arizona homeowners pay an average of $1,116 each month for mortgage payments. Compared to the national average, a mortgage in Arizona is around $43 cheaper.
The median home price in Arizona is $257,600.