Arizona Mortgage and Refinance Rates

Current mortgage rates in Arizona

As of Wednesday, July 10, 2024, current interest rates in Arizona are 7.18% for a 30-year fixed mortgage and 6.63% for a 15-year fixed mortgage.

The median home sale price in the state was up 3.5 percent year-over-year as of April 2024, according to ATTOM. Prices in popular cities like Scottsdale and Tucson increased even further. Those gains, plus today’s higher mortgage rate environment, continue to make housing affordability a challenge.

Refinance rates in Arizona

Since the COVID-19 pandemic, mortgage refinance rates have more than doubled. This makes knowing when to refinance a hard decision for many Arizonan homeowners. However, because home values have also risen, many Arizona homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

Arizona mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Arizona. Remember that rates change frequently, and fluctuations can happen in response to several market forces and Federal policy. 

National mortgage rates by loan type

Mortgage statistics for Arizona

Compared to housing markets elsewhere, the market in Arizona has seen some slowing home price growth in the last year. Here are more statistics about housing in the state:

• Most affordable counties, April 2024: Apache, Cochise, Graham, Greenlee, Santa Cruz
• Median home sales price, April 2024: $440,000
• Median down payment, April 2024: $72,900
• Homeownership rate, Q4 2023: 67% 

Sources: ATTOM, U.S. Census Bureau

Mortgage options in Arizona

If you’re in need of a mortgage to buy or refinance a home in Arizona, explore these options:

• Arizona conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) as well.
• Arizona FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
• Arizona VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.
• Arizona USDA loans: If you’re buying a rural property in Arizona, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.

First-time homebuyer programs in Arizona

HOME+PLUS Home Buyer Down Payment Assistance Program

Arizona’s HOME+PLUS mortgage program connects homebuyers in Arizona with a 30-year, fixed-rate conventional, FHA, VA or USDA loan, along with down payment assistance of up to 5 percent. You don’t need to be a first-time homebuyer, but you’ll need to meet other criteria, including:

• You’ll need to be buying a home (existing or new-construction) that’s either a single-family house or duplex, condo, townhome or manufactured property. You can’t buy a three- or four-unit property through this program.
• Your income can’t exceed county loan limits.
• You’ll need a 640 minimum credit score or up to 680, depending on your debt-to-income (DTI) ratio and loan program.
• You’ll need to complete a homebuyer class.

Home in Five Advantage Program

For homebuyers in Maricopa county, the Home in Five Advantage program offers up to 6 percent of the purchase price for down payment assistance. This comes in the form of a three-year forgivable second mortgage that only must be repaid if you sell or refinance within three years. To qualify, you’ll need:

• A credit score of 640 or better
• An annual income of up to $138,600
• Debt-to-income ratio of up to 50 percent
• To occupy the home as a principal residence within 60 days of closing
• To complete homebuyer education

An additional 1 percent of assistance is available for low-income borrowers, teachers, first responders and U.S. military service members and veterans.

Tucson and Pima County down payment assistance

For those buying in Tucson and Pima counties (excluding Tribal lands), there’s a local down payment assistance program offering up to 20 percent of the purchase price. To qualify, you’ll need to contribute at least $1,000 of your own money, have three months of mortgage payments in reserves, meet financial requirements and buy a house within the purchase price limits.

How to find the best mortgage rate in Arizona

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Learn more: How to get a mortgage

Additional Arizona mortgage resources

• Arizona loan limits by county: Learn the conforming loan limit for your city or town.
• Arizona mortgage lenders: Explore mortgage lenders in your state.
• Arizona housing market overview: Know what to expect as a homebuyer or seller in Arizona.
• How to buy a house in Arizona: Get set up for a successful house hunt with this guide.
• Cost of living in Arizona: Get a sense of how much you’ll spend or save.
• Homeowners insurance in Arizona: Compare policies from a variety of providers.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards