Buying a Home in Arizona: What You Need to Know
If you're considering buying a home in Arizona, understanding the true cost of homeownership is essential. Beyond your mortgage payment, Arizona homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses Arizona-specific data to give you accurate monthly payment estimates.
Arizona Property Taxes
Arizona has an effective property tax rate of 0.44%, ranking #48 out of 50 states (where #1 is the highest). On a median-priced home of $455,000, you'd pay approximately $2,002 per year in property taxes, or about $167/month.
Arizona is among the states with the lowest property taxes in the nation. This can make homeownership more affordable here compared to high-tax states, though you should verify rates in your specific county.
Arizona Homeowners Insurance
The average annual homeowners insurance premium in Arizona is $2,331 for $300,000 in dwelling coverage, or about $194/month.
Arizona's insurance costs are moderate compared to national averages. You may be able to lower your premium by increasing your deductible, bundling with auto insurance, or installing security systems.
Arizona Closing Costs
Closing costs in Arizona average 0.76% of the home's purchase price. On a $455,000 home, that's approximately $3,458. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
Arizona Housing Market
The median home price in Arizona is $455,000. This is close to the national median of approximately $410,000, offering a balanced housing market with options for various budgets.
More Arizona Mortgage Tools
Use these additional calculators to plan your Arizona home purchase: