Forecast for Arizona 2019 Mortgage Interest Rates

Forecast for Arizona 2019 Mortgage Interest RatesIt’s that time of year when we have a better idea of what the future holds for homebuyers in Arizona. The rise and fall of mortgage interest rates is always at the forefront of the decisions that we help people make.

In fact, getting the lowest interest rate possible can help you afford more on a home purchase than you thought was possible. While interest rates can fluctuate wildly depending upon factors outside of our control, we can now issue you our best forecast for the rest of the year.

Factors That Affect Mortgage Interest Rates

It often seems as though interest rates fluctuate on a whim. However, there are both external and internal factors that influence how high and low rates get in a given time period.

For instance, lenders tend to charge higher rates when more people are buying homes. The Federal Reserve Board also lowers and raises rates, depending upon the need to influence the economy.

Internal factors that affect interest rates are things that you can often control. Your credit score, along with the type of loan that you seek, have a significant impact on the rates you are offered. Putting down a higher down payment can also help you to receive a lower rate.

Recap of 2018

The forecasts for last year mostly came true. Before the year started, it was predicted that mortgage interest rates in Arizona would rise slightly and end at just above 5%. While this did happen, they also took a slight dip towards the end of the year with the market swinging in favor of buyers.

We ended the year nicely with an average interest rate that was just below 5% for the typical loan applicant.

What to Expect This Year

Right now, the average mortgage loan interest rate on a 30-year fixed rate loan is hovering at around 4.6%. It is slightly lower if you opt for a 15-year fixed rate loan, which is around 4.07%. Since the rates are expected to stabilize, this should stay true for the majority of the year.

Variances According to Location

If you are moving from a different state, you may notice that the average home loan rates differ in Arizona from where you currently live.

In past years, interest rates also varied among the different cities in Arizona. For 2019, however, they stay close to the same rate throughout the state. Therefore, you can expect to see similar rates for Phoenix as you would for another city, such as Flagstaff.

How to Get the Best Mortgage Interest Rate

Naturally, every home buyer wants to get the best mortgage interest rate possible. After all, even the difference of a single percentage adds up over the term of your loan.

In addition to buying your house while the interest prices are low, you can improve your financial standing. Making the effort to pay down your debt and make timely payments helps to increase your credit score, which is one of the ways lenders determine your rate.

You can also compare the rates offered to you by different lenders. Our team is adept at quickly getting those numbers so that you find the one that helps you save more on interest over time.

Depending upon your eligibility, we can also help you find types of loans that offer lower mortgage interest rates. For instance, a VA loan has negotiable interest rates.

With interest rates stabilizing, the time to buy your new house is now. If you were deterred by higher interest rates in the past, give it another look.

From now through the end of the year, your forecast looks better than it has in years.

Please follow and like us:

Getting the Lowest Mortgage Interest Rate

Hey Friends!

Ever wondered just how to obtain the lowest mortgage interest rate? If so, you are in luck. Today I am going to share with you some simple steps that will allow you to do just that.

Never in all my years have I had a client come to me and tell me “Jimmy, please give me the highest mortgage interest rate that you have.”

I have however, (multiple times a day) had clients tell me “I want the best interest rate possible” …and you know something, there is absolutely nothing wrong with that.

The truth is that we should all want the lowest mortgage interest rate because it can literally save us tens of thousands of dollars in interest over the life of the loan.

Your Credit Score Affects Your Interest Rate

First off, let’s touch on credit scores. The single greatest factor to obtaining the lowest mortgage interest rate has to be credit score. Simply stated, the higher the credit score, the more competitive the interest rate.

The good news is that if your credit is less than perfect or could use improvement there are multiple ways to increase your score. Contact us at the contact info below for more details.

Higher Down Payment Can Mean a Lower Interest Rate

Now let’s move into down payments. Down payments can help you obtain more competitive interest rates when purchasing a home because the lender may view their investment to you (the money for your home) as less risky. So, it pays (if you can do it) to put money down – ideally 20% if possible.

Now, if you are nowhere close to having a 20% down payment, not to worry as there are multiple loan programs available on the market that will allow you to put as little as 5, 3.5, or even 0% down.

Paying Points for a Lower Rate

Lastly, another way to obtain the lowest interest rate when purchasing a home is paying points.

If you have never heard of the term “paying points” it’s simply this: paying money to the lender at closing to obtain a lower mortgage interest rate over the life of the mortgage loan. This will allow you to have a lower rate of interest over the life of the loan thus allowing you to save money long term.

For more strategies on how to obtain the lowest mortgage interest rate feel free to contact us today at 480-800-8387 or email me at Jimmy@PHXHomeLoan.com.

Please follow and like us: