The prevailing Arizona fixed loan mortgage rate today is hovering somewhere around 4.5 to 4.7 (as of this writing) for a 30 year fixed term, 4.0 to 4.2 for a 15 year fixed term, and 3.5 to 4 for a 5/1 ARM. While signs point to a relatively unchanged rate within these bounds, sudden changes are not unheard to happen. A lot can happen in the course of a few days, and mortgage watching isn’t an exact science, but here’s a lowdown on some things which, even if you can’t exactly take to the bank, you can take to heart and apply as more of the common sense things to watch out for when mortgage watching AZ refi style.

Mortgage rates rise and fall depending on the writing on Wall Street’s wall

An Arizona fixed loan mortgage rate for 30 years may increase or decrease depending on the optimism (or pessimism) of Wall Street. Expected growth spurs an increase while economic downturns elicit a rate decrease. This can best be explained by the maxim: thieves will steal from you if they think you’re rich.  A relatively healthy economy makes bankers think people have money to spend (which they usually do, of course).

Published real-time mortgage base rates mean nothing until you’ve taken into account your individual situation

That really isn’t surprising. You know that, and your loan officer will tell you that. Base rates are just there as a guide for consumers, and are not in any way meant to be taken as infallible truth. Especially if the rates published are national rates. You will notice that once you break down the rate region by region, and state-by-state, figures will start differing.  An Arizona fixed loan mortgage rate for example, may be far lower when compared to, say, rates from New York or California. This is important to take note of, especially if you’re only looking for rates for AZ refi and nothing else.

Rates will start differing largely once you start computing for individual situation. Things to consider include:

Your loan size – is it less than $100,000 or greater than $400,000?

Your credit score – a better credit score usually means better interest rates for you. Of course, if you’re into debt, that can’t be much to speak of. But lenders are looking for “better than average” as opposed to “sucks eggs” credit report. Applying only until you get a much better credit score may help more in the long run.

The type of property to be mortgaged – is it a condo? A multi-unit? Pricier property will fetch higher rates.

Your specific loan-to value – a value lower than 80% will get lower rates as opposed to a higher loan-to value.

The difference of a 15-year fixed to a 30 year fixed may mean the difference between sending your kids to college in the future

No kidding. As of now, a 15-year fixed mortgage term offers almost half the rate of a 30-year fixed. That’s $150,000 savings on a loan size of $300,000. Of course, going into the future, that may mean as much or less depending on inflation. But still, a 50% discount is something to be thankful for, isn’t it?

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