Arizona Mortgage Rates

Mortgage rates

Arizona mortgage rates may be slightly higher than the national average, but the value of Arizona homes have also dropped, making Arizona homes a good buy. Just a few years ago home value in Arizona skyrocketed. There were interest only homes that promised to be lucrative, because it was thought Arizona home values would continue to skyrocket. They did not and many were caught with these types of loans and homes they could not sell. This makes is a good time for home buyers in Arizona, because the homes in Arizona are not selling as fast and are again at a reasonable sale price. The value of Arizona homes will only go up is the consensus.

Popular Arizona cities

  • Tempe has long been a popular city in Arizona, due to the Arizona State University campus and the hot spots that surround it. The Tempe Town Lake has many events during the year that draws people from all over. The famous July 4th show and the Chili Cook Off bring in hoards of people. The new Tempe Market Place and Mill Avenue shopping and bars are exciting and inviting to all ages. Entertainment is lively and parking is plenty.
  • Gilbert is a fast growing family community with many new businesses start ups. The new housing in Gilbert is making it a popular spot and the community is very friendly, which draws many young families. The housing is affordable and the community is very family oriented. For a new family looking for a job and good schools, Gilbert is the place to raise a family.
  • Sedona is a very touristy town with beautiful sites and restaurants to choose from. People from around the globe come to Sedona to see the beautiful red rock and to frequent its popular restaurants and hotels. It is not too far from metropolitan Phoenix, and a day trip is not out of the question. You don’t find red rock like this in any other state.

Arizona’s Fastest Growing Cities

  • Gilbert is the fastest growing city in Arizona, and has grown 40%, since 2000. Gilbert has so much room to grow and the new housing and business popping up in the area; make it a great place for families to grow too. The employment opportunities are the leading reason for the growth. The open land leaves opportunity for housing growth at reasonable rates. Gilbert is known for its manufacturing businesses, retail, and business parks. Gilbert was ranked 36 as one of Money’s Best Place to Live.
  • Chandler is another fast growing city and has grown 25% since 2000. Chandler has a lot of technology business and aviation, retail and business parks that offer employment to new people coming into the state. Its small airport is popular and convenient. It has reasonable housing rates that make it affordable to families. There are many rental dwellings for those who do not want to buy, which makes it popular.

Arizona As A Recourse State

Arizona is one of the few nonrecourse states, meaning it when a home is sold in a foreclosure or short sale for less than its value, the lender cannot come after the owner for the remaining amount of the original loan. The owner cannot be sued for the full amount of the loan. If an owner has refinanced the property, they may have trouble with their lender, because the refinance was not to purchase a home. In a nonrecourse state like Arizona, a lender can sue the owner who did not repay a line of credit. Right now in Arizona, most home values have dropped in half. Many are leaving their homes or short selling their homes, without lender recourse. The good news for home buyers in Arizona is that the time to buy a home is now. They are at an all time low and there are many great deals on homes for sale.

Arizona Mortgage Options

  • Fixed rate mortgages- The fixed rate mortgage in Arizona will have a set payment and interest rate. The loan will be paid back in 30 year or 15.
  • Adjustable-rate mortgages- The adjustable rate mortgage provides a low mortgage payment at first and the payment will be low. Over time the rate of the loan will greatly increase. It is thought that with the value of the home going up, the rate increase will move with the increase in value.
  • Second mortgages- Many home owners take out a second mortgage for major purchases or home improvements. These loans are fixed rate loan or may be in the form of a line of credit.
  • Loan restructure- Another loan possibility is the loan restructure. This loan is used to get a lower interest rate or to pull cash out of a home. A family might want to consolidate debt, make a second realty purchase, and buy another owner out of a home. Most of these loans are for lowering the payment of the home, which can make sense.

To get one of these loans for a home mortgage in Arizona, it is best to shop around. Look for the lowest rate and check your credit. Be sure you understand your loan and ask questions about it, before accepting it.

Arizona Real Estate Prices

In Arizona the average price of a house is approximately $150,000. The housing price has dropped 50% in Arizona since the economic crisis hit. Below are some comparisons:

  • In the northeast, the median home price was $240,000.
  • The Midwest median home price was approximately $139,000. The south had a median home price of $148,000.
  • The west had a median home price of $209,000.

The US mortgage rates have jumped to its largest rate in 6 months. The costs associated with borrowing have also reached a high. The demand for housing is not as high with the unemployment rate as high as it is. Foreclosures are part of the norm, because of so many families living in homes that have half their value. Even those who can afford the payment are opting to leave the mortgage or short sale. Foreclosures since last May of 2009 have surpassed last year’s total. Nevada has the highest number of foreclosures. Utah and California are the number 2 and 3 states ranked highest in foreclosures. Arizona is in the top 10 states with the highest number of foreclosures.

Arizona Foreclosure Rules

  • Foreclosures are available as judicial and non-judicial. Most accepted is the non judicial.
  • The foreclosure sale by the trustee cannot be under the power of sale clause, unless the foreclosure lawsuit is dismissed.
  • For a family residential property on 2.5 acres or less, a purchase money mortgage deficiency is not accepted.
  • On a non judicial foreclosure, there is no right of redemption. The judicial foreclosure does allow the right to redeem until the sale. It does not allow for it if abandonment of the property exists.
  • It is possible to make the missed payment during the non judicial foreclosure by 5pm on the sale date.
  • One of the most important foreclosure rules at this time in Arizona is that a deficiency will be allowed when the home’s value has declined.

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