Arizona Mortgage Rates
Arizona Mortgage Rates: Finally Stable Mortgage Rates After Recent Increases
January 20, 2011 (FreeRateUpdate.com) – Arizona mortgage rates increased slightly earlier this week by 0.125 percent over last week. The conforming mortgage rate currently in Arizona for a 30-year fixed rate mortgage is 4.625 percent and 4.000 percent for a 15-year fixed rate conforming mortgage loan. For an Arizona 5/1 adjustable rate mortgage the mortgage rate is 3.125 percent. Those Arizona borrowers that are well qualified are able to obtain a mortgage with these low rates at only 0.7 to 1.0 origination points. The Arizona FHA mortgage rate also increased slightly at the beginning of the week. For an Arizona 30-year fixed FHA mortgage loan the FHA mortgage rate is 4.500 percent, which is an increase of 0.125 percent over last week’s mortgage rate. For an Arizona 15-year fixed FHA mortgage the FHA mortgage rate is 4.000 percent, which is an increase of 0.250 percent over last week’s mortgage rate. An FHA 5/1 adjustable rate mortgage loan is currently at 3.000 percent, which has remained unchanged over last week’s mortgage rate. The Arizona FHA mortgage remains popular amongst Arizona borrowers due to their favorable loan terms. However, FHA mortgage rates will be slightly higher than conforming mortgage rates due to the higher closing costs associated with FHA loans. Additional fees that the Federal Housing Administration charges include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on. These additional expenses are charged to the Arizona mortgage borrower.
The best qualified loan applicants would have a pristine credit history, a credit score above 580 (sometimes upwards of 620,) reliable income sources, and enough financial reserves to cover a down payment of at least 10 percent, which is verified by bank statements provided by Arizona borrowers. The Federal Housing Administration typically has more relaxed standards. However, due to recent circumstances, the FHA has become stricter on underwriting standards and now more closely mimics the qualification guidelines of conforming mortgage loans.
Arizona jumbo mortgage rates have remained unchanged from the previous week. A 30-year jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year jumbo mortgage has a mortgage rate of 4.750 percent. For an Arizona 5/1 adjustable rate jumbo mortgage the mortgage rate is 3.875 percent, which is also unchanged. For a single family residence, the national conforming mortgage limit is $417,000 in most of the continental U.S. and $729,750 for “high-cost” areas, such as Washington D.C. and Los Angeles. For a majority of the counties in Arizona, however, the conforming mortgage loan limit is $417,000.
The slight increase in mortgage rates on the beginning of the week is attributed to the decline in home construction throughout the state of Arizona. Homebuilders, hence, have a negative outlook of the near construction future. At the same time, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. Therefore, when MBS prices are down, Arizona mortgage rates are up. Moreover, as home construction continues to lag behind, mortgage rates are not likely to fall anytime soon.
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FHA Mortgage 101
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- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference
- Conventional vs. FHA mortgage, the difference