Refinance rates in ArizonaHere’s a quick overview of your home refinance options, each with its own features and typical rates.
Current 30 year-fixed mortgage refinance rates are averaging: 7.96%
The current average rate for a 15-year fixed mortgage refinance is: 7.08%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?Interest rates rose for most of 2023 but finally began to drop at the end of October, crossing below 7% by the end of the year. The current mortgage rates forecast is for rates to continue to trend downward long term.
Our market expert is cautiously optimistic about what’s to come in 2024, and predicts that rates may be closer to 6% by the end of the year.
That said, the market is ever-changing and beyond your control. To help you get the best mortgage rates possible, let’s look at how mortgage rates are determined and which of these factors are within your power to change.
Here are a few steps you can take to get the best mortgage rate:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?After you’ve applied for a mortgage and gotten a loan estimate with an offer you want to accept, you should ask the lender to give you a mortgage rate lock. This makes sure your interest rate won’t increase before you get to the closing table.
The Home in Five Advantage program offers down payment assistance up to 6% for a 30-year mortgage, as well as help with closing costs. The loan can be an FHA, VA or conventional loan and should come with a competitive interest rate.
Who qualifies?Borrowers must:
Have a credit score of at least 640
Have annual income of $138,600 or less
Take a homebuyer education course
Purchase in Maricopa County
The City of Tucson provides down payment assistance up to 20% for borrowers in all of Pima County, excluding tribal lands.
Who qualifies?Borrowers must:
Earn no more than 80% of the Area Median Income (AMI), which ranges from $45,500 to $85,750, depending on family size.
Pay 35% or less of your monthly income for rent or other housing debt, and 45% or less of your income on all debt payments
Have at least two month’s worth of mortgage payments saved
Contribute at least $1,000 of their own money towards the home purchase
The Pathway to Purchase program helps borrowers purchase homes in 17 Arizona cities by providing up to $20,000 in down payment assistance.
Who qualifies?Borrowers must:
Not currently own another home
Have at least a 640 credit score
Meet conventional loan requirements
Purchase a home for $371,936 or less
Complete and obtain certification for a homebuyer education course
Receive home inspection
Arizona has several first-time homebuyer programs, including ones for down payment assistance programs and help with covering closing costs.
Get more details about each program at our list of Arizona first-time homebuyer programs page.
Who qualifies as a first-time homebuyer?
→ Arizona conventional loans. A conventional loan is the industry standard, and it can be a solid choice for those with good credit and sufficient funds for their down payment. Conventional loans typically share certain minimum requirements set by Fannie Mae and Freddie Mac.
→ Arizona FHA loans. FHA loan requirements are generally much easier to meet than those for a conventional loan. You might qualify with a credit score as low as 500 so long as you make a 10% down payment. And if you have at least a 580 credit score and would rather make a smaller down payment, you may be able to put down as little as 3.5%.
→ Arizona VA loans. VA loan requirements come with much flexibility and value for borrowers with a military background. These loans also include some great perks, like the ability to purchase or refinance without making a down payment or paying for mortgage insurance.
→ Arizona streamline refinances may be available for an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL). These loans will require less paperwork and less hassle than other refinance types. However, you’ll need to refinance from one FHA or VA loan into another FHA or VA loan in order to take advantage of these options.
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