Should I Refinance? Calculate Your Savings
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Full Loan Comparison
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Disclaimer: Results are estimates for educational purposes only and do not constitute financial advice. Actual savings depend on your credit score, lender fees, prepaid interest, and local costs. Consult a licensed mortgage professional before refinancing.
Arizona Refinance Breakdown
Refinancing a mortgage in Arizona has become an increasingly attractive option as home values across Phoenix, Tucson, and Scottsdale have surged considerably over the past five years. The average Arizona mortgage balance reached roughly $269,000 in 2024, reflecting strong appreciation. While rates remain elevated compared to pandemic-era lows, homeowners with equity built since 2020 are well-positioned to consider a cash-out refinance or rate reduction if rates dip further.
Refinance Closing Costs in Arizona
Arizona refinance closing costs typically fall between 1.5% and 3% of the loan amount, with an average around $3,500 on a mid-range loan. Arizona does not require the use of a closing attorney, and transactions are commonly handled by title companies and escrow agents, which helps streamline the process and reduce costs. Title insurance is widely available on the open market in Arizona, with competitive pricing among providers.
Cash-Out Refinance Rules in Arizona
Arizona follows standard conventional lending guidelines, capping cash-out refinances at 80% LTV for most borrowers. There are no state-specific restrictions on cash-out amounts beyond standard federal and lender-imposed guidelines. FHA cash-out refinances allow up to 85% LTV, and VA loans offer higher ceilings for eligible veterans. Arizona is a community property state, which means a spouse's consent may be required even if they are not on the loan.
Local Refinance Assistance Programs
The Arizona Department of Housing (ADOH) and its Home Plus program, administered through the Arizona Industrial Development Authority, primarily assist first-time buyers with down payment assistance but does extend to some refinance scenarios. The HOME Plus program pairs with a 30-year fixed-rate mortgage from approved lenders and is worth exploring for low-to-moderate income Arizona homeowners seeking to improve loan terms.