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What down payment is required to buy a home in Arizona?
The minimum down payment required varies depending on the Arizona digital mortgage that is selected.
Conventional loans typically require a 5% down payment. However, there are flexible conventional loan programs designed to assist Arizona first-time homebuyers 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 online mortgage payment calculation include?
Principal and Interest: Principal is the part of the 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 purchasing a home, part of the monthly payment includes the cost of homeowner’s insurance, also known as hazard insurance. Homeowner’s insurance covers damage to the property and the associated liability or legal responsibility for any injuries and property damage.
In Arizona, an annual policy usually runs between $500 and $800. Our Arizona online mortgage calculator uses the average of that range for the calculation.
Property Taxes: Homeowners pay property taxes. In Arizona, it is usually paid through the county assessor where the property is located, typically twice a year in October and March. The monthly mortgage payment includes an estimated monthly amount needed to pay taxes. For example, if the half-year tax payment is $600 then the monthly mortgage payments would be $100.
The exact tax rate on a home depends on where the 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 between .85% and 1.5% of market value. This is an estimated amount because property taxes are levied based on assessed value. Our Arizona online mortgage calculator uses the average of the range stated above for the calculation.
Mortgage Insurance: Depending on the loan type and scenario, a borrower may be required to pay monthly mortgage insurance. Mortgage insurance, or private mortgage insurance (PMI), is a type of insurance that 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 online mortgage calculator uses that rate for our calculation.