Tag Archives: Arizona Mortgage

Why Buyers May Lose If They Don’t Act Now

Rising mortgage rates could have a big impact on buying a home when shopping for real estate, economists warn. “Every time the interest rates go up, you eliminate a group of people who can no longer afford to buy a house,” Some people may have to rent for a period of time until they make more money, or buy a smaller house,” says Laura Boyajian of Wise Choice Properties, Historic Phoenix Homes Specialist.

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To avoid further complications in their plans, your home buyers may want to speed up their home search this Spring as interest rates are forecasted to move higher in the coming months. Forty-four percent of home buyers say rate increases likely will force them to settle for a smaller, less expensive home that requires a longer commute to their jobs, according to a realtor.com® survey. First-time home buyers may be most affected by rising costs, as increasing home prices and interest rates price some out of the market.

Mortgage rates are at their highest levels in more than four years. The 30-year fixed-rate mortgage averaged 4.46 percent last week, according to Freddie Mac, and that’s largely expected to increase since the Federal Reserve said it is likely to raise its short-term interest rates this year. That could prompt mortgage rates to move higher at least three times this year, starting this month.

“For the bulk of buyers, it’s not going to kill their decision to purchase a home,” Rick Palacios Jr., director of research at John Burns Real Estate Consulting, told realtor.com®. “If anything, it will get them off the fence by creating a sense of urgency.” Higher rates are “a kick in the pants for you to start thinking seriously about buying.”

Rate increases, even minor ones, can add up over time. Realtor.com® offers this example: On a $300,000 house with a 30-year fixed-rate mortgage and 20-percent down payment, the difference between a 4 percent and 5 percent mortgage rate is $142 a month. Calculated over the life of the loan, that is more than an extra $51,000. “Buyers thought they could wait forever because rates were going to stay low forever,” says Boyajian. “They’re starting to realize that if they’re going to buy, they should probably buy now.”

Home buyers who are concerned about rising rates may want to lock in with a lender, which guarantees the current rate for a set period of time. Still, don’t let your clients linger on making a decision. It typically costs several hundred dollars to lock in a rate.

If you are interested in a free consultation to see if buying a Phoenix home is a better option for you and get pre-approved for a home loan, please call or email me today. You may be surprised at what you learn. I have access to programs that offer down-payment assistance with money you do not have to pay back. 

Whether you’re buying or selling a home in Central or Downtown Phoenix, or just have some questions about anything at all in or about any one of the historic districts in Phoenix, I’d be very happy to help you! Just call or email me anytime.

Arizona counties rank high as best places to get a mortgage

Home buyers looking to head back into the market in Arizona may do so in a state where it’s pretty decent to get a mortgage.

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A new SmartAsset.com look at the best counties for getting a mortgage finds those in Arizona among the tops in the country. Pinal County came in first in the state and No. 34 nationally.

The report looked at five-year borrowing costs for as a ranking measure, but also examined property taxes, loan funding rates and annual mortgage payments to determine a composite score.

While the state’s most populous counties, Maricopa and Pima, ranked well nationally they were behind the curve in the state, ranking No. 3 and No. 9 respectively.

The best counties to get a mortgage mostly reside in Florida, with six of the top 10 in the ranking in the Sunshine State.

Methodology

For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.

To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment Best Mortgage Markets Index
1 Pinal, AZ 63.16% $76,932 $12,606 $14,789 94.24
2 Gila, AZ 58.11% $76,932 $10,586 $14,789 93.08
3 Maricopa, AZ 64.40% $77,437 $9,638 $14,789 76.73
4 Coconino, AZ 62.61% $77,437 $8,294 $14,688 76.70
5 Yavapai, AZ 61.05% $77,437 $9,001 $14,789 75.54
6 Mohave, AZ 59.90% $77,437 $9,166 $14,789 74.90
7 Yuma, AZ 62.26% $77,437 $11,292 $14,884 74.74
8 Graham, AZ 56.77% $77,437 $8,009 $14,789 74.13
9 Pima, AZ 62.13% $77,437 $13,620 $14,688 73.28
10 Cochise, AZ 55.76% $77,437 $9,981 $14,789 72.47
  AZ 56.00% $77,370 $10,134 $14,775
Methodology

Sources: Mortgage Bankers Association, US Census Bureau 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset