Arizona Mortgage Calculator

How to Use the Arizona Mortgage Calculator

This guide provides a detailed walkthrough on using the Arizona Mortgage Calculator to estimate your monthly mortgage payments and other related costs.

Step 1: Enter Home Price

The first step is to input the price of the home you are interested in. Ensure the price is within the allowed range of $50,000 to $10,000,000. This value is required to proceed further.

Step 2: Specify Down Payment

Enter the amount you plan to put down as a down payment. There is no minimum required, but this field must be filled out to continue. The calculator will use this to determine the loan amount and the down payment percentage.

Step 3: Select Loan Term

Select the loan term you prefer from the available options: 30 Years, 20 Years, 15 Years, or 10 Years. This choice will affect your monthly payments and the total payment over the loan term.

Step 4: Input Interest Rate

Enter the interest rate for the mortgage. The acceptable range is from 0.1% to 15%, and you should provide a value up to two decimal places (e.g., 3.75). This rate is critical for calculating the monthly principal and interest payments.

Step 5: Enter Property Tax Rate

Input the annual property tax rate. The average property tax rate in Arizona is around 0.62%, but you can enter any value between 0% and 5% as appropriate. This will be used to calculate the monthly property tax.

Step 6: Specify Home Insurance

Provide the annual cost of home insurance. This value, divided by 12, will give the monthly insurance cost which is included in the total monthly payment.

Step 7: Optional Inputs

• Monthly HOA Fees: If applicable, enter the monthly Homeowners Association (HOA) fees. This is optional and can be left as $0 if there are none.
• PMI Rate: If your down payment is less than 20%, enter the Private Mortgage Insurance (PMI) rate, typically between 0.5% and 1%. This field is optional and only needed if PMI applies.

Step 8: Review Results

After entering all required fields and any optional ones applicable to your situation, the calculator will display several result fields:

• Loan Amount: The total amount of money borrowed, calculated as the home price minus the down payment.
• Down Payment Percentage: The percentage of the home price that your down payment represents.
• Monthly Principal & Interest: The payment covering the loan’s interest and the principal amount.
• Monthly Property Tax: Calculated based on the property tax rate provided.
• Monthly Insurance: The monthly amount needed for home insurance.
• Monthly PMI: The monthly cost of PMI, applicable only if the down payment is less than 20%.
• Total Monthly Payment: The sum of all monthly costs, including principal, interest, property tax, insurance, PMI, and HOA fees.
• Total Payment Over Loan Term: The cumulative payment made throughout the loan term, determined by multiplying the total monthly payment by the number of months in the loan term.