Home Loans-Chandler, AZ

When you evaluate your ability to afford a house in Chandler, Arizona, the down payment has a significant impact on the pay structure. A larger down payment will lower the total loan amount as well as the monthly premiums. Plus, if you cover 20% of the home price upfront for a conventional loan, you will not have to pay for private mortgage insurance. Down payment assistance is available in this city through the statewide HOME Plus program.

Interest rates, often referred to as mortgage rates, are what you pay to acquire the loan on top of the cost of the home. Mortgage lenders, whether they are a bank or private firm, charge interest to reduce the risk of a borrower defaulting. Mortgage rates are determined by the market, but you will have access to more competitive rates if you have a strong credit history and sufficient capital. A lower interest rate is also an incentive to refinance with the right lender if you are a current homeowner. Current rates in Chandler average around 7.3% for a 30-year fixed mortgage, 6.5% for a 15-year fixed, and 6.7% for a 5-year adjustable rate.

Insurance is a tool that a mortgage lender may leverage to protect themselves from riskier buyers. If you cannot afford a down payment of 20%, then you will likely be covering insurance premiums each month on top of your regular monthly payment.

When you are signing the final documents and finishing the purchase, you will have to pay closing costs. If you are a first-time homebuyer, it is easy to be surprised by these fees. Count on the closing costs being equal to 3-6% of the total purchase price. Closing costs can be wrapped up in the loan in some cases, so be sure to discuss this option with District Lending.

Mortgage lending firms will offer multiple options for the length of a home purchase loan. You could sign an agreement to pay back the loan for the next 10, 15, 20, or even 30 years. The length will directly impact how high your monthly premiums are.