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AZ Refi

AZ refi can be a good option for real estate investors and individuals with property located in Arizona. Many property owners are electing to refinance mortgages before interest rates rise. Others enter into cash-out refinancing to obtain funds for home improvements or to pay off outstanding debts. Arizona property owners the opportunity to reduce monthly installments by reducing the rate of interest and extending terms of the note. However, borrowers must be aware of the costs involved with refinancing mortgages. The average cost ranges between $2500 and $6500, but could be more when mortgages contain a prepayment clause.

Prepayment penalties are generally assessed when borrowers sell or refinance mortgages within the first five years of the loan. Individuals with VA, FHA or mortgages through credit unions are exempt from prepayment penalties. All other borrowers should review the truth in lending statement attached to their home loan documents to determine if early payoff penalties exist.

Arizona has been one of the hardest hit states for foreclosure. Homeowners who have had their home repossessed by the bank require a place to live. In order to capitalize on the influx of foreclosed homeowners, real estate investors who offer rental properties realize they need to lower rental rates to be competitive. To maintain positive cash flow, many investors are refinancing mortgages to reduce their payment.

Property owners who obtained mortgage loans for bad credit and have improved credit scores may benefit from refinancing. Subprime loans are assessed a much higher rate of interest than those offered to borrowers with excellent credit. Interest rates can vary by as much as 2.5-percent or more.

Bad credit borrowers who have improved their fico score to 720 or higher should take time to investigate the possibility of AZ refinance. Obtaining an interest reduction of 2-percent can save borrowers thousands of dollars of the term of the mortgage note.

AZ refi is not for everyone. Those who owe more than the appraised property value will not qualify for refinancing. Borrowers who have paid more than half of their home loan payments should carefully weigh the pros and cons of mortgage refinance. Property owners with less than 5-percent home equity and those with bad credit are usually ineligible for taking out a new home mortgage loan.

It makes smart financial sense to compare mortgage lenders to determine who offers the best terms and lowest interest rates. One trusted source for comparing mortgage providers is This website provides mortgage calculators, along with a bounty of information to help borrowers make informed decisions.

Borrowers can also obtain housing counseling through the Department of Housing and Urban Development. HUD provides a list of nationwide housing counselors, along with information and resources regarding various home financing options. Topics include: mortgage refinance, loan modifications, loan consolidation and foreclosure prevention. Learn more by visiting

Real estate is usually the most valuable asset people own. It is important to conduct research and gather facts in order to prevent placing your property and finances at risk. We invite you to begin by browsing our AZ refi article library and encourage you to subscribe to our mailing list. Subscribers receive instant notification when new articles are published.

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Published on June 28, 2010 at 09:25 AM

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