Arizona Mortgage Calculator
Estimate your monthly mortgage payment in Arizona using local property tax rates, insurance costs, and current interest rates.
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$20%
%
Monthly Payment
$2,208
$1,816 principal & interest
Principal & Interest: $1,816
Property Tax: $292
Insurance: $100
Loan Amount
$280,000
Total Interest
$373,787
Total Cost
$653,787
LTV Ratio
80.0%
Advanced
Advanced Calculator
Charts, scenario comparison, tax benefits, equity projection
Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Arizona
Arizona has become one of the most popular relocation destinations in the United States, particularly for transplants from California, Washington, and other high-cost western states. The Phoenix metro — the fifth-largest city in the US — offers a booming job market, warm climate, and a growing technology and corporate presence. With an average home price of $440,000 and one of the lowest property tax rates in the country (0.51%), the total cost of ownership is genuinely competitive.
Beyond Phoenix and Scottsdale, Tucson offers a more affordable and laid-back alternative, while the suburban cities of Gilbert, Chandler, Mesa, Tempe, and Surprise continue to see significant growth and new construction. Arizona's mild winters and abundant sunshine drive strong demand year-round.
Key Housing Facts for Arizona
- Average home price: $440,000
- Average effective property tax rate: 0.51%
- Average homeowners insurance: $1,800/year
- Residential properties assessed at 10% of full cash value
- Annual assessed value increase capped at 5%
- No state real estate transfer tax
- Most active markets: Phoenix, Scottsdale, Gilbert, Chandler
- Most affordable markets: Tucson, Yuma, Kingman, Sierra Vista
Arizona First-Time Homebuyer Programs
- Home Plus Program: 3–5% down payment assistance as a grant or 3-year forgivable second mortgage, paired with 30-year fixed FHA, VA, USDA, or conventional loan. Available statewide.
- Home in Five: City of Phoenix program providing up to 5% down payment assistance; an additional 1% for military veterans and teachers.
- Pima Tucson Homebuyer's Solution: Provides 4–6% of loan amount for down payment and closing costs for Pima County buyers. Funds are available as a silent second or grant depending on the program tier.
- WISH Program (Wells Fargo / FHLB): Up to $22,000 in matching grants through Federal Home Loan Bank programs for qualifying low-to-moderate income buyers.
- VA and USDA Loans: Available in many Arizona markets — USDA covers many rural and suburban areas including parts of the greater Phoenix and Tucson metro periphery.
Property Tax Rates by Major Arizona County
| County | Effective Tax Rate | Median Home Value | Annual Tax (Median) |
|---|---|---|---|
| Maricopa (Phoenix) | 0.56% | $440,000 | $2,464 |
| Pima (Tucson) | 0.57% | $265,000 | $1,511 |
| Yavapai (Prescott) | 0.52% | $380,000 | $1,976 |
| Coconino (Flagstaff) | 0.47% | $490,000 | $2,303 |
| Yuma | 0.68% | $185,000 | $1,258 |
| Mohave (Kingman) | 0.53% | $200,000 | $1,060 |
| Pinal (Casa Grande) | 0.67% | $310,000 | $2,077 |
| Cochise (Sierra Vista) | 0.66% | $185,000 | $1,221 |
Average Home Prices by Major Arizona City
| City/Area | Median Home Price |
|---|---|
| Scottsdale | $720,000 |
| Flagstaff | $560,000 |
| Gilbert | $520,000 |
| Chandler | $490,000 |
| Phoenix | $420,000 |
| Mesa | $400,000 |
| Prescott | $490,000 |
| Tucson | $265,000 |
| Yuma | $185,000 |
Frequently Asked Questions
Arizona has one of the lowest effective property tax rates in the country at approximately 0.51%. On Arizona's average home price of $440,000, that's roughly $2,244 per year — significantly less than most states. Arizona assesses residential properties at 10% of full cash value, and tax rates (set by counties, cities, school districts, and special districts) are applied to that assessed value. Arizona also caps the annual increase in full cash value at 5% per year.
The Arizona Department of Housing (ADOH) and the Arizona Industrial Development Authority (AzIDA) offer the HOME Plus program, which provides a 30-year fixed-rate FHA, VA, USDA, or conventional mortgage plus 3–5% down payment assistance as a grant or forgivable second mortgage. The assistance is forgiven after 3 years with no monthly payment. Income limits and purchase price limits apply. Home Plus is available statewide through participating lenders.
Phoenix was one of the hottest housing markets in the country during 2020–2022, with prices rising 50–60% driven by migration from California and other high-cost states, remote work flexibility, and low mortgage rates. The market has since moderated but remains active. The metro's suburban cities — Scottsdale, Chandler, Gilbert, Tempe, and Mesa — continue to attract technology companies and corporate relocations. Tucson offers a more affordable alternative within Arizona.
Arizona has a flat state income tax rate of 2.5% as of 2023, after voters approved Proposition 208 and the legislature subsequently revised the tax code. This is notably lower than California (up to 13.3%) and makes Arizona attractive to high-income earners relocating from high-tax states. The low property tax rate (0.51%) combined with the flat 2.5% income tax makes Arizona's overall tax burden quite favorable.
Arizona closing costs typically run 1.5–2.5% of the purchase price. On a $440,000 home, expect $6,600–$11,000. Arizona does not have a state transfer tax on real estate, which keeps closing costs lower. Common costs include title insurance, escrow fees, loan origination fees, appraisal, and recording fees. In Arizona, escrow companies (not attorneys) typically handle the closing process.