Arizona Real Estate Mortgage
A new home is a major purchase and a huge investment. There are government
programs to help first time as well as seasoned homebuyers so check with your
realtor to see if you qualify for any assistance.
Budget for your home
As you are figuring out what you can afford it's important to spend some time
reviewing your finances and budget. You'll want to involve your banker or
financial planner in these discussions to ensure you qualify for a mortgage you
can afford. Once you and your bank have come to an agreement on your loan
amount you can begin looking for homes. As you are searching, keep in mind how
much you will be spending on the home and how much you're going to want to
spend on appliances, repairs and renovations. Keep your expenses well within
your budget.
What if you already own a home and are looking to refinance?
According to Realty Times the current mortgage rates in Arizona are 5.95% for a
30 year fixed rate, 5.47% for a 15 year fixed rate and 4.20% for a 1-year
adjustable rate mortgage. These low rates make it an exceptional time to
refinance. The rule of thumb says that you should be saving at least a half a
point of interest when refinancing. This will help offset the costs of your new
appraisal and closing costs. If you bought your home several years ago you are
in for some serious savings through refinancing.
Time for change?
The rates in Arizona have held steady for the last year or so but are probably
in for an upward trend. Currently inflation is rather low but as the economy
grows inflation rises and the Federal Reserve will increase interest rates to
combat growing inflation. If rates rise this year, as economists are
predicting, then the home sales may slow. This is bad news if you’re looking to
sell your current home but good news if you’re looking to buy. Even through you
may be paying a slightly higher interest rate you’ll be running into some
sellers who are desperate to move their home. It’s a great time for haggling.
Arizona has seen some explosive home sales and over the last few years,
especially in the Phoenix area. Home sales, new and old, may slow a bit in the
future but people will continue to flock to the sunny climes for second homes
or in their retirement years.
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