Choosing the best mortgage lender in Arizona depends on the type of home loan that fits your situation. It also requires you to consider your priorities. For instance, a traditional lender with higher interest rates may offer in-person service and a greater variety of financing options compared to online mortgage lenders, who prioritize low costs but lack options.
- Best Mortgage Rates in Arizona
- Best Mortgage Lender for First Time Homebuyers
- Best Online Mortgage Lender
- Best Lender for In-Person Service in Arizona
- Best Lender for a VA Home Loan
Best Mortgage Rates in Arizona
To find out which lenders carry the best mortgage rates in the Grand Canyon State, we obtained 30-year mortgage estimates from dozens of lenders. To get a fair picture of the rates most Arizonans can expect, we used the state's median home value as the starting point for these estimates.
Lowest Mortgage Rates for Arizona
|First Internet Bank||3.88%||3.90%||$753||$540|
|Arizona Valley Lending||3.88%||3.91%||$753||$750|
Estimates for a 30-year fixed rate mortgage for $200,000 with 20% down payment and 740 credit score
While mortgage rates change daily, we found only small variations in interest rate among Arizona's cheapest lenders. There were greater differences in loan fees than in the rate, but even these fees didn't really give a clear picture of the best deal. This was because many lenders didn't include the additional upfront cost of common third-party mortgage fees, such as property appraisal and pest inspection. Each lender sets its own fees on these services based on its relationships with the vendors.
In the end, shopping for lenders purely by mortgage rate can lead you to miss other important differences between companies. Some lenders will be more experienced than others in providing particular loan types, such as government-backed FHA loans. Others may be in a better position to offer brick-and-mortar service or access to an online origination process. Choosing the features and services you want in your mortgage helps you identify the best lender for your situation more effectively than jumping on the lowest rate you happen to find.
Best Mortgage Lender for First Time Homebuyers: Quicken Loans
Quicken's online-only mortgage originations represent the best combination of value and quality for a first-time homebuyer living in Arizona. In particular, Quicken's FHA loans struck a sound balance between reasonable interest rates and much lower down payments.
First-Time Purchase Mortgages in Arizona
|Bank of America||4.00%||4.15%||$921|
Estimates for a $200,000 FHA purchase loan with 3.5% down payment and 740 credit score
Quicken's Rocket Mortgage is a nationwide platform for getting a mortgage online, and it produced the best quotes for an FHA loan based on our theoretical Phoenix homebuyer. On a fixed-rate, 30-year FHA home loan with Quicken, you can expect rates to be far lower than conventional options from any of the major brick-and-mortar banks in Arizona. While all these banks also have FHA loans available, they don't share any rate or fee details like Quicken does, which also illustrates the greater transparency you get with Rocket Mortgage.
Besides the greater affordability of its loans for first-time buyers, Quicken delivers the benefits of a high-quality service experience. While this isn't as easy to measure as mortgage rates or fees, JD Power's latest surveys of mortgage borrowers show Quicken at the top of the scoreboard in consumer satisfaction. The surveys gave the company high marks in loan servicing as well as the origination process, which suggests that you'll have strong support from Quicken both during and after your initial application.
Best Online Mortgage Lender: Guaranteed Rate
If you aren't buying your first home but still prefer to find information online about Arizona mortgage rates, then Guaranteed Rate is a great place to start your search. This company makes its product and rate information fast and simple to understand, thanks to a well-designed website and tool for inquiring users.
Guaranteed Rate Mortgage Loans
|Loan Type||Rate||APR||Monthly P+I|
|30-Year FHA Loan||3.75%||4.61%||$754|
|30-Year VA Loan||3.75%||4.13%||$741|
Estimates for a $200,000 purchase loan with 20% down payment and 740 credit score. The APR and monthly costs for ARMs can increase based on changes in the index rate
Few online lenders available in Arizona provide as much information as Guaranteed Rate does about your mortgage choices. Guaranteed Rate's array of conventional, government-backed and jumbo home loans ensures that most users will find at least one loan that's worth looking into. Beyond the website's spread of initial estimates, you can create an account to track the progress of your loan application and upload documents at your convenience. For customers who insist on speaking with a person, Guaranteed Rate also has representatives available by telephone.
While Guaranteed Rate didn't always come up with the best mortgage rates on our sample estimates, its rates weren't too far off the mark in any category. This lender's affordability also received a boost from its generous application of lender credits, which compensate borrowers with discounts on their closing costs. Guaranteed Rate's online-only lending model costs the company less to operate, giving it room to cut back on borrower fees. We recommend starting here if you want a quick overview of mortgage rates in your area.
Best Lender for In-Person Service in Arizona: Chase Bank
A ubiquitous brand in Arizona and beyond, Chase Bank is our choice as the most convenient mortgage lender for consumers who want a more personal, face-to-face loan experience. Chase's rates and fees are fairly standard, but it's the best option among the few mortgage lenders that run large networks of branch locations.
Mortgage Loans at Chase Bank
|Loan Type||Rate||APR||Estimated Monthly Payment||Cost to Close|
Agency loan estimates for a $200,000 loan with 20% down payment and 750 credit score.
Chase's national presence is backed by thousands of branch locations, ATMs and one of the better online banking portals available to US customers. This makes it a great choice for Arizonans who want the reliability of mortgage services from an established lender. Having a branch in your area also means that you'll have access to a loan officer who is familiar with the area and the surrounding housing market. You won't necessarily have the benefit of a locally knowledgeable MLO if you apply for a loan with an online lender.
With its selection of home loans, deposit accounts and credit cards, Chase also works very well for borrowers who want comprehensive financial services in one place. However, keep in mind that such institutions aren't perfect. While Chase itself hasn't seen anything like Wells Fargo's massive customer abuse scandal, you should always make sure that your banker isn't trying to sell you on more financial products than you really need. Getting a mortgage rate discount thanks to your existing relationship with Chase is beneficial, but it shouldn't lure you into skipping your due diligence on the loan agreement as a whole.
Best Lender for a VA Home Loan: USAA
For Arizona's veterans and active duty servicemembers, USAA had the best deal on a zero-down VA loan that we found using our standard criteria. Besides the excellent value of the loan itself, USAA upholds the high level of customer service that's common among mortgage lenders that cater specifically to members of the armed forces.
Best VA Lenders in Arizona
|Lender||Mortgage Rate||APR||Monthly P+I||Estimated Points and Fees|
Fixed-rate estimates for a 30-year VA loan of $225,000 with 0% down payment, 2.15% VA funding fee and credit score of 740
With no down payment required for qualifying applicants, getting a VA loan from a company like USAA is by far the most affordable path to buying a home as a veteran. For quotes based in Arizona, USAA's VA loan estimate struck the best balance of interest rate and upfront fees. While some lenders estimated a better rate or promised smaller loan fees, the inherent tradeoff between long-term and short-term cost means that lenders generally can't deliver savings on both ends. USAA's VA loans seem to control the rate without causing fees to skyrocket.