What Are Current Home Mortgage Rates?

The Arizona Mortgage Rates table below shows today’s interest rates and historical interest rates based on home loan term. Data is provided for 30 year fixed mortgage rates, 15 year fixed mortgage rates and Adjustable Rate Mortgage (ARM) rates.

Rates are based on regional averages and should be used as a guide when to compare quotes from a prospective lender. Refinance and purchase mortgage rates are comparable but have different qualification requirements.

Rates are only part of the mortgage equation

Interest rate is only one measure of a loan program and the fees associated with originating, processing and underwriting the loan need to be measured as well.

The APR % can be used to compare loan offers with equal interest rates. The APR % includes all of the fees associated with originating , processing and underwriting the loan.

As a borrower, request a Good Faith Estimate (GFE) and a Truth In Lending (TIL) disclosure. The TIL will disclose the APR % you are paying on the loan. The APR % will always be higher than the interest rate displayed on the GFE because it includes additional fees charged by the lender.

The GFE will show a breakdown of fees, including the following:

• Appraisal
• Title
• Discount Points or Fees
• Origination Fees
• Broker Fees
• Processing Fee
• Underwriting Fee
• Homeowners Insurance
• Mortgage Insurance
• Property Taxes

Some lenders may include ‘junk fees’ that inflate the cost of the loan but aren’t related to any real work being done to complete the loan.

Should I pay ‘Discount Points’ to reduce the interest rate?

Paying discount points or origination fees is a way to reduce your monthly interest rate. However, the cost of the loan will increase and the APR % will increase. If you are planning to hold the property and keep the loan (not refinance) for more than 10 years, it may be beneficial to pay discount points or higher origination fees.

Keep in mind that interest paid on a owner occupied residence is tax deductible and small reductions in interest rates are typically not worth the higher fees. The payback period for the fees should be calculated for each scenario and the tax advantage should be figured into the calculation.

Which loan program is right for me?

There are many different types of mortgages that carry different rates and qualification guidelines. Most consumers are aware of 30 year fixed rate loans, however, these loans come in many flavors such as government (FHA, VA, USDA) and conventional (fixed rate, ARM, interest only). Careful research is required to ensure proper loan selection for your financial situation.