Mortgage Calculator Arizona 2026: Payment, Property Tax & PMI
This mortgage calculator for Arizona estimates your full monthly payment — principal & interest, property tax, homeowners insurance and PMI. Arizona bans real estate transfer taxes and charges only a $2 deed fee. Enter your own rate; everything is calculated privately in your browser.
A mortgage calculator for Arizona estimates the full monthly cost of an Arizona home loan: principal and interest from standard amortization, plus property tax, homeowners insurance and private mortgage insurance (PMI) when you put down less than 20%. Arizona’s constitution bars real estate transfer taxes, so the only state charge at closing is a flat $2 fee per recorded deed.
How the Mortgage Calculator Arizona Formula Works (Worked Example)
Principal and interest use the standard amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of payments. Property tax is the home price × your local rate ÷ 12, insurance is your annual premium ÷ 12, and PMI is the loan amount × your PMI rate ÷ 12. Example: a $430,000 Arizona home, 10% down, 30-year fixed at a user-entered 6.5% (click Load Example above to reproduce it).
| Item | Inputs | Monthly |
|---|---|---|
| Principal & interest | $387,000 loan, 6.5%, 360 payments | $2,446.10 |
| Property tax | 0.48% of $430,000 ($2,064/yr) | $172.00 |
| Homeowners insurance | $1,600/yr (example — use your quote) | $133.33 |
| PMI | 0.6% of $387,000 ($2,322/yr) | $193.50 |
| Total monthly payment | $2,944.94 | |
| Real estate transfer fee (one-time) | Flat fee per deed | $2.00 |
Over 30 years this loan pays about $493,600 in interest. Your rate is an input, not an assumption — check the current weekly national average in Freddie Mac’s Primary Mortgage Market Survey and compare lender Loan Estimates.
Arizona Property Tax Rate and Your Monthly Payment
The Tax Foundation (Property Taxes by State and County, 2026 edition, from Census American Community Survey data for 2020–2024) puts Arizona’s statewide effective property tax rate at about 0.48% of owner-occupied home value, one of the lowest in the US. Arizona taxes homes on a Limited Property Value whose growth is capped at 5% a year under Proposition 117 (2012), so a long-time owner’s bill can sit well below what a new buyer will pay. Use the rate from the listing or the county treasurer for your parcel.
| Local rate | Annual tax on $430,000 | Added to monthly payment |
|---|---|---|
| 0.36% | $1,548 | $129.00 |
| 0.48% (statewide default) | $2,064 | $172.00 |
| 0.72% | $3,096 | $258.00 |
Arizona Closing Costs: No Transfer Tax, $2 Deed Fee
Arizona voters approved Proposition 100 in 2008, adding Article 9, Section 24 to the state constitution. It bars the state, counties and cities from imposing any new tax or fee on the sale or transfer of real estate. The only transfer charge is a flat $2 fee per deed or contract under A.R.S. § 11-1132, collected by the county recorder along with the affidavit of property value.
| Arizona item | Amount | Usually paid by |
|---|---|---|
| Real estate transfer tax | None — barred by Ariz. Const. art. 9, § 24 | — |
| Real estate transfer fee (A.R.S. § 11-1132) | $2 per deed or contract | Set in the purchase contract |
| Escrow deposits for tax and insurance | Set by your lender — see your Loan Estimate | Buyer |
| Lender, appraisal and title charges | Vary by lender and title company — compare Loan Estimates | Negotiable |
Some costs are negotiable, and sellers sometimes cover part of a buyer’s closing costs as a concession.
How Arizona Mortgage Rates Affect Your Payment
Rates in Arizona follow national mortgage markets and vary by lender, credit score, down payment and loan type. The 6.8% default is an example rate, not a quoted average. On a $430,000 home with 20% down, it produces a monthly principal and interest payment of about $2,243. A 0.25% rate increase adds roughly $58 to that payment, so shopping multiple lenders can save thousands over the life of the loan.
Adjustable-rate mortgages (ARMs) often start lower but carry rate-reset risk. FHA loans (3.5% down), VA loans (0% down for eligible veterans) and USDA loans (0% down in eligible rural areas) are alternatives to a conventional loan in Arizona.
First-Time Buyer Programs in Arizona
The Arizona Industrial Development Authority (AzIDA) runs the HOME Plus program, which pairs a 30-year mortgage with down payment assistance for eligible buyers. Check AzIDA for current income limits and assistance amounts.
FHA loans are available nationwide with 3.5% down for borrowers with a 580+ credit score. VA loans require no down payment and no PMI for qualified veterans and service members.
If your down payment is below 20%, PMI on a $387,000 loan adds about $194/month at a 0.6% annual rate. The Urban Institute puts typical PMI at roughly 0.46%–1.5% of the loan per year depending on credit score. PMI can be removed once your loan-to-value ratio reaches 80%, so extra payments accelerate the timeline to dropping PMI.
Last updated: October 2026. Estimates only — confirm figures with your lender, title company and local tax office.
Frequently Asked Questions
What is the average mortgage rate in Arizona in 2026?
Arizona mortgage rates track national averages and change weekly. Check the Freddie Mac Primary Mortgage Market Survey for the current 30-year fixed average, then compare quotes from several lenders - your rate depends on credit score, down payment and loan type.
What is the average monthly mortgage payment in Arizona?
It depends on price, rate and local taxes. As an example, a $430,000 home with 20% down at 6.8% comes to about $2,548 a month in principal, interest, taxes and insurance, assuming a 0.48% property tax rate and $1,600 a year for insurance. Enter your own numbers above.
Do I need PMI in Arizona?
Yes — if your down payment is less than 20%, lenders in Arizona require Private Mortgage Insurance (PMI) on conventional loans. The Urban Institute puts typical PMI at about 0.46%–1.5% of the loan amount per year, depending on credit score. PMI is removed once you reach 20% equity.
What is the average home price in Arizona?
Home prices change every month and vary widely by city and county, so this page does not quote a statewide median. The $430,000 default in the calculator is only an example — enter the price of the home you are considering.
What is the property tax rate in Arizona?
The Tax Foundation’s 2026 edition, using Census data for 2020-2024, puts Arizona’s statewide effective property tax rate at about 0.48% - roughly $2,064 a year on a $430,000 home. Taxable value can grow no more than 5% a year under Proposition 117, and rates vary by county and school district.
Does Arizona have a real estate transfer tax?
No. Proposition 100 (2008) added Article 9, Section 24 to the Arizona Constitution, which bars new taxes or fees on the sale or transfer of real estate. The only charge is a flat $2 fee per deed under A.R.S. 11-1132, collected by the county recorder.
What is the monthly payment on a $430,000 house in Arizona?
With 10% down and a 30-year fixed loan at 6.5%, principal and interest is about $2,446 a month. Adding 0.48% property tax ($172), $1,600 a year insurance ($133) and 0.6% PMI ($194) brings the total to about $2,945 a month.