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Financing your home purchase in Arizona

By
Real Estate Agent with HomeSmart

If you are planning to purchase a home in Arizona, one thing you might worry about is how to finance the purchase.  Don't panic if you do not have enough savings to finance your purchase. There are a lot of different options around and you just have to look for them and choose the one that suits you the best.

There are many loan options available and lenders adapt to creative ways to attract the potential home owner.  You can choose between conforming loans and non-conforming loans, and conventional loans and government loans. Some loans have the mortgage payment period spread out to as long as 40 to 50 years!  Some also offer almost 100% financing for those who do not have means for making the down payment. There are so many different loan programs.

To give you an idea, let's consider the most basic loan program-the 30 year fixed rate loan.  As the name suggest, you will have 30 years to pay off the loan with the interest rate fixed for the whole length of the loan.  Approximately for a $500,000 loan at 6.5%, the mortgage payment amounts to $3160.34 per month for 360 months.

Here's your homework if you are planning to shop for a loan.  Do reseach on what types of loans lenders are offering and choose the one that is best for you.  Make sure you compare the available options carefullly so you don't spend needless money.  Remember...not all lenders are equal!!!   Some have programs that others do not have, so ask questions to make sure you are getting the right loan program.