Arizona Mortgage Calculator Basics

You may wonder why many people are moving to Arizona these days. The weather is perfect for those tired of the brutal winters up north. Warm winters and sunshine throughout the year are what you’ll get when you move here.

There’s also more than just the Grand Canyon or vast forests and mountains to enjoy here, you’ll surely love the food plus the job scene gives plenty of opportunities.

If you plan to move to Arizona but aren’t sure how much house you can afford, our  Arizona mortgage calculator can help you determine how much your monthly payments will be.

In this post, we’ll share the basics of how a mortgage calculator works and why it can be a valuable tool for potential Arizona home buyers.

Things you need to input into your mortgage calculator

According to Zillow, typical Arizona home values are $432,850 for the month of September 2022. Suppose this is your first time buying a home you need to know that your loan amount isn’t the only factor to consider when calculating your mortgage payment. Here’s a list of what mortgage calculators need to determine your monthly payment.  

The price of your home

When using a mortgage calculator, the first thing you need to input is your home price. Your home price isn’t always the list price of the home you want. It’s the final price you agree to pay your seller. 

Home prices are one of the factors you can adjust on your mortgage calculator. You can always negotiate for a lower price. A little tweak in your home price input can impact your monthly payments.

Talk is over with your Arizona mortgage broker to estimate how much wiggle room you should consider when calculating the cost of Arizona real estate. 

Your downpayment

The next thing you need to provide is your down payment amount. When you apply for a conventional loan, you can pay as low as 3% down, but you need to pay for PMI or private mortgage insurance. You must put down at least 20% to save on PMI payments.

Let’s say your home price is $300,000, you need a $60,000 down to avoid paying for PMI. If you can’t afford a substantial down payment, you can pay $9,000 but agree to pay for PMI.

Paying a larger downpayment has an advantage. You may be able to negotiate a better rate since a bigger down shows lenders that you are less likely to default on your loan.

Your loan term

Another factor your mortgage calculator needs is your loan term. You can choose a 30, 20, or 15-year term for your loan. You can compare your options when you choose a shorter term than a longer one.

If you want a lower monthly, you should pick a longer term. On the other hand, a shorter term will mean less money paid in interest, but the overall payment will be higher.

Your interest rate

Lenders charge interest in exchange for approving your loan. The interest rate is a percentage of your loan amount you must pay until your loan is paid off.

If you’ve chosen a loan product already, you’ll know the range of interest rates you’ll be getting. Enter the rate into your mortgage calculator 

Taxes, Homeowners Insurance, and HOA fees

Property taxes are paid to your local government to maintain and fund schools, libraries, and other public services. Homeowners insurance gives protection from break-ins and natural disasters. 

These are optional, but if you want a more accurate computation, you can go ahead and input your taxes, insurance, and homeowners association fees. You can ask your agent or browse your local property assessor's website to know these numbers.

You can now review all your loan details and proceed to compute your monthly mortgage payments.  

Do you need help with funding your new Arizona home?

If you’re a first-time home buyer, the costs involved in buying a home may be overwhelming. Aside from your monthly payments, you must factor in property taxes, PMI, homeowners insurance, and more.

A standard mortgage payment isn’t just your home price. There are four parts to a monthly mortgage: your principal, interest, taxes, and insurance.

A mortgage calculator is a valuable tool to help you know how much home you can afford.

If you are ready to take the next step in the home-buying process, speak with one of our loan experts at Castle Rock Mortgage.

We can assist you from application to closing for that stress-free homebuying experience.

Call or message for a consultation today.


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.