Average Mortgage Payment in Phoenix, Arizona: Early 2017

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Home prices in Phoenix, Arizona rose significantly during 2016. Additionally, mortgage rates are higher now (February 2017) than they were at the same time last year. This means that the average monthly mortgage payment in Phoenix has risen as well.

Based on current home prices and mortgage rates, and factoring in the average down payment and most commonly used type of loan, the average mortgage payment in Phoenix for recently closed home loans is somewhere around $909 per month.

Granted, there are many factors that can influence the size of a monthly mortgage payment. But this figure does give us some insight into the average amount Phoenix homeowners are paying these days for their home loans.

Calculating the Average Mortgage Payment in Phoenix

Here are the “ingredients” we used to calculate the average mortgage payment amount for Phoenix, Arizona in early 2017:

  • Home prices: According to the real estate research team at Zillow, the median home price for Phoenix in February 2017 (when this article was published) was $205,600. Trulia reported a slightly higher median home price of $210,000. So we shot the middle and used $207,500 for the purposes of calculating the average mortgage payment on new loans.
  • Down payment: We used a down payment of 10% for this calculation, which is about average. Based on the target home price above, that gives us a down payment amount of $20,750.
  • Loan amount: By subtracting the down payment (the borrower’s investment) from the home price, we end up with a loan amount of $186,750. This is the amount that’s actually being borrowed in this scenario.
  • Mortgage rate: According to the weekly survey conducted by Freddie Mac, the average rate for a 30-year home loan at the time of publication was 4.16%. We used the 30-year year fixed-rate mortgage loan, because it is by far the most popular financing option among Phoenix homeowners today.
  • Monthly payment: Lastly, we plugged the loan amount and mortgage rate into a standard mortgage amortization calculator and spread it over 30 years. That gave us a monthly payment of around $909.

Of course, many homeowners in the Phoenix area took out their loans years ago. So their mortgage rates could be very different from the one we used above. These numbers reflect current market conditions, in early 2017. So this gives us some insight into the average mortgage payment for Phoenix home loans originated recently.

Disclaimer: As you can see, there are quite a few variables that can affect the size of your monthly mortgage payments. For the sake of simplicity, we left out property taxes, discount points, and other variables. This is not an exact science, but rather a ballpark estimate of the average Phoenix mortgage payment using current market prices.