Buying an Arizona Home Can Actually Cost Less than Renting an Apartment

Did you know that with the recent economic downtown in the United States, it’s more affordable than ever to buy a home in Arizona? It’s true. Many people don’t realize how affordable homes really are now in this sunny state. In fact, many homes here have become more affordable than condominiums, townhomes, and even apartments. If you’re interested in investing in Arizona real estate for a profitable future, you need to know as much as you can about investor loans.

Regardless of what type of home or homes you’re looking to buy, you will likely need help from an Arizona investor loan to finance your properties. Most people choose to invest in real estate in order to turn a potential profit. For this reason and others, investor loans are used simply for that—investing. These loans are not applicably used for primary residences as a normal mortgage loan would be. They are ideal for secondary residences for a variety of reasons.

First, there is an assortment of investor loan lenders out there to choose from. It’s important that you shop around for the best interest rates and points available to you. There will also be several loans types that you will likely be able to choose from, so it’s important for you to plan ahead for the future of your investor loan. That plan will determine which type of loan is best for your needs.

If you plan to buy a secondary property for the sake of renting it for a profit, your best choice is probably a fixed-rate mortgage loan. Fixed-rate mortgage loans are great for long-term financing because the interest rate remains constant throughout the loan period. Theoretically, if you begin with a 7% interest rate on your fixed-rate mortgage loan, the mortgage payments will also end at 7% interest. It really is that simple.

For other plans for your secondary property that don’t include renting it out, you may be better off getting an ARM (adjustable-rate mortgage) loan. An ARM loan is especially beneficial for those looking to keep their secondary residence for a short time; a few years, at the most. This is because ARM loans begin with a fixed-rate for the first few years of the loan. The starting rate is usually substantially smaller than that of a fixed-rate loan, which is why many choose to go this route. For example, if the average interest rate on a home is 7% with a fixed-rate loan, it probably wouldn’t be unusual to see an ARM loan with a beginning rate of 4%. Once the first few years have passed, you will periodically see an adjustment to the rate in correlation with the economy and the rest of the real estate market.

In short, now is a great time in the Arizona real estate market to buy both primary residences and secondary properties. With the vast amount of homes to choose from on the market today, as well as the historically low prices, it’s no surprise that many people who previously dwelled in apartments and the like are turning to Arizona investor loans to buy homes for the first time.

Joel McLaughlin
Learn more about Arizona Home Loans & Mortgages
Learn more about Investor Loans
Article written & distributed by Dataflurry