Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

Mortgage Myths: Here's Why You Don't Need a Full 20 Percent Down Payment If you’re just getting into the real estate market, you may have heard that 20% down is the ideal percentage in order to lower your monthly payments and get your mortgage application approved. However, while 20% is often suggested, many people struggle to come up with this amount of money. If you’re staving off home ownership, here are some reasons you may not need to hold off as you long as you thought.

Minimizing Your Insurance Costs

Putting down 20% of the total purchase price of your home is often suggested, but it doesn’t definitively mean that your application won’t be approved if you don’t. If you have a good credit score and are in good financial standing, putting less than 20% down means you’ll have to pay Private Mortgage Insurance (PMI); however, it can be worth paying the extra funds in order to get into the real estate market sooner and start paying into your most significant investment.

Mortgage Programs For Less Than 20%

It may seem less possible to buy a home if you only have 5 or 7% of the purchase price, but there are many programs in the United States that enable those with limited funds to apply for a mortgage. From the Federal Housing Administration (FHA) to Fannie Mae and Freddie Mac, there are many lenders that can offer you mortgage programs that will work for your situation. While higher rates come in tandem with a lower down payment, there are options out there for those who haven’t saved quite enough.

Why Put Down 20%?

Putting down 20% is not a necessity for mortgage approval or purchasing a home, but it can be a great means of saving money in the long run and reducing your interest rates. If you’re raring to get into the real estate market and don’t want to wait for the bills to stack up, that’s OK, but if you want to hold off and save up additional funds before diving in, this can mean more money and a more solid investment in the future.

The magic number is often 20% when it comes to a down payment on a home, but you don’t require this percentage of your home’s price in order to get approved for a mortgage. If you’re currently considering diving into home ownership and would like to know more about the opportunities in your area, give me a call – J.P. Cook – 602-320-4253.

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36495 N Livorno Way Scottsdale, AZ 85262

$1,836,000
3 Beds
3.5 Baths
4,114 SqFt
Status Active
MLS # 6752289
Property Type Single Family Residence
Price Type --
Welcome home to luxury living in the Sonoran Desert, located within the gated Community of Treviso! Set on nearly an acre of land, this tranquil cul-de-sac property offers utmost privacy. Step into the charming gated courtyard adorned with a custom metal gate by a local artist and stone pavers. Inside, notice the soaring 12-foot ceilings in the spacious Living Room flooded with natural light. The chef's kitchen is a dream, boasting an expansive Typhoon Bordeaux granite Island, Quartz Countertops, and top-of-the-line stainless appliances. Retreat to the Primary Bedroom with its own private patio for sunrise vistas. The Primary Bathroom indulges with his and hers vanities, a glass shower enclosure with dual shower heads, and a luxurious soaking tub. The spacious secondary bedrooms both have en-suite full bathrooms. The office showcases has sliding doors that open to the center courtyard, two custom built-in desks, shelving and Barn Doors. The incredible backyard is perfect for entertaining with a heated pool & spa w/ automated LED lighting, low-maintenance artificial grass, and gorgeous landscaping. **Owned Solar System for lower electric bills and Auto Fertilizer for plants. Wood Shutters and automated blinds throughout the home. This home has been meticulously cared for and is move-in ready! Three-car garage. Perfect for a primary residence or a lock-and-leave winter home. This North Scottsdale location is great for mountain bike riding and hiking in the mountains. Close to Carefree and Cave Creek for dining, shopping, and nightlife.

4412 E Sells Drive Phoenix, AZ 85018

$1,830,000
4 Beds
4.5 Baths
2,731 SqFt
Status Active
MLS # 6700680
Property Type Single Family Residence
Price Type --
Experience the allure of this exquisite, newly built single-level sanctuary meticulously designed by Signature Homes, nestled in the vibrant heart of Phoenix Arcadia with awe-inspiring views of Camelback Mountain. Spanning 2,731 square feet, this home offers an enchanting blend of elegance and functionality, featuring 4 spacious bedrooms, each boasting ample walk-in closets and 4 luxurious en-suite full bathrooms, complemented by a convenient powder room and a dedicated office space. The gourmet kitchen is a culinary haven, seamlessly flowing into a grand great room adorned with a cozy fireplace, creating an inviting ambiance for gatherings and relaxation. A separate dining area, elegantly connected through a stylish butler's pantry, sets the stage for entertaining guests. Outside, the rear of the home unveils a large grassy area, an enticing outdoor kitchen and entertaining area, and ample space for a magnificent raised spool. Perfectly situated near top-tier dining establishments, premier shopping destinations, and esteemed schools, this home embodies the epitome of luxurious contemporary living, offering a lifestyle of unparalleled comfort, style, and sophistication.

9280 E Thompson Peak Parkway Unit 42 Scottsdale, AZ 85255

$1,825,000
3 Beds
2.5 Baths
2,600 SqFt
Status Active
MLS # 6755509
Property Type Townhouse
Price Type --
Wonderful opportunity in the heart of Tapadero at DC Ranch. Front courtyard pool and exquisite back yard experience with amazing sunset views. Both outside experiences make this the perfect entertainers home. The Owners suite is separate from the secondary bedrooms and Den. The den area includes wall to wall book shelves and built in desks. Situated directly between the Country Club at DC Ranch and all the amenities of the Desert Camp Recreation Center. Enjoy the path and trail system which winds through all the neighborhoods and ends at Market Streets restaurants and shops.

8171 E Juan Tabo Road Scottsdale, AZ 85255

$1,825,000
5 Beds
4 Baths
3,690 SqFt
Status Active
MLS # 6764308
Property Type Single Family Residence
Price Type --
Explore this breathtaking home nestled in the sought-after North Scottsdale area. As you enter, you'll be welcomed by European White oak floors, and a living room centered around a stunning floor-to-ceiling marble slab gas fireplace. Prepare to be wowed by the dazzling designer kitchen, featuring custom cabinetry and exquisite Quartzite slab countertops. Equipped with a premium Sub Zero-Wolf appliance suite and a Wolf gas range, this chef-inspired space promises to elevate your culinary adventures. The kitchen opens into an inviting family room with direct access to the patio and backyard. The master suite boasts a large sitting area, perfect for unwinding after a busy day. Step outside to the expansive covered patio, complete with a fireplace, where you can enjoy stunning views of of the resort-style saltwater pool and spa. The outdoor area also includes a built-in BBQ, ideal for hosting memorable gatherings and enjoying to beautiful Arizona winter nights. Further enhancing its appeal, the three-car garage features epoxy flooring and plenty of storage, combining functionality with convenience. This remarkable home showcases exceptional craftsmanship and attention to detail, offering an unmatched living experience.

19737 E Willow Drive Queen Creek, AZ 85142

$1,825,000
5 Beds
4.5 Baths
4,002 SqFt
Status Active
MLS # 6778242
Property Type Single Family Residence
Price Type --
You won't find another home like this! Stunning 4,002 sq. ft. single-level in the highly desirable La Jara Farms community that sits on one of the largest lots in the neighborhood - 1.06 acres. Walk into a wide open floor plan with 4 bedrooms, 3.5 baths and a large game room access to the side garage. Large master suite leads into master bath with expansive shower, freestanding tub and double vanity sinks. Kitchen includes a massive, tiered countertop island, built-in fridge, double ovens, plenty of cabinet space all opening up to the great room all under tall 12' ceilings. It gets better... walk outside to gorgeous pool, new hot tub, pickleball court and a dream of an RV garage that's fully air-conditioned with an attached 1,476 sq. ft. casita that includes a large bedroom, living area, full kitchen and laundry! Casita bathroom includes a huge walk in shower! There is plenty of space for the in-laws or friends in town. You won't be lacking in garage space and parking. Home is in a great location near shopping, freeway access, Arizona Athletic Grounds and much more. This one is a must see!

1733 E Bent Tree Circle Unit 47 Flagstaff, AZ 86005

$1,825,000
3 Beds
3 Baths
2,089 SqFt
Status Active
MLS # 6696626
Property Type Single Family Residence
Price Type --
*Building is under construction. From the private front courtyard to the inviting back deck, this home offers a variety of options for indoor/outdoor living. With a fireplace anchoring the great room and a central island in the gourmet kitchen, there is plenty of room to entertain family and friends.

1117 W Coronado Road Phoenix, AZ 85007

$1,825,000
4 Beds
3.5 Baths
3,699 SqFt
Status Active
MLS # 6749718
Property Type Single Family Residence
Price Type --
WOW!A historic home on a double lot (nearly 1/2 acre) in the exquisite Encanto Palmcroft Historic District with a terrific ''livability'' factor!The large living and dining rooms have soaring beamed ceilings, glowing wood floors & elegant large windows while the family room has a vaulted ceiling and a bank of french doors opening to a spacious patio overlooking the lush yard,sparkling pool & ramada.Each of the four bedrooms has direct access to a bath plus a 1/2bath for guests.The eat-in kitchen has loads of cabinet and counter space w/ two sinks,breakfast bar & pantry.The breakfast room can double as an office! The finished basement features custom built-in cabinetry and can accommodate a pool table plus a separate workshop/craft/exercise/costco storage room. Truly a must see property!

7705 E Doubletree Ranch Road Unit 42 Scottsdale, AZ 85258

$1,825,000 - 3Br/3Ba -  for Sale in Gainey Ranch, Scottsdale
Open House
$1,825,000
3 Beds
3 Baths
2,550 SqFt
Status Active
MLS # 6761882
Property Type Single Family Residence
Price Type --
BRAND NEW ROOF W/ 10 yYEAR WARRANTY! Welcome to this light and bright, meticulously maintained, contemporary southwestern smart home that is centrally located in the desirable gated community of Arroyo Vista, conveniently nestled within Gainey Ranch. This home has all the latest technology and can be operated and maintained from anywhere on the globe, making this decorative turn key oasis, a more than comfortable, primary or secondary residence. The lush, secluded, entertainer's backyard is very inviting with it's 30 foot sparking pool, mature plantings, sophisticated lighting and decorative surface decks which sit on the most expansive double lot within the 61 developed parcels at Arroyo Vista. This spacious, functional 3 bedroom floorplan offers two upgraded, well maintained, dual zone, TRANE HVAC system two primary bedrooms, with walk-in closets and full ensuite bathrooms that come in at over 500 square feet each. The third bedroom has built in bookcases and can also be used as a guestroom / office. The formal entryway and living room have vaulted ceilings with recessed lighting, augmented by east west windows that continually bring in rays of natural light which add a spacious and natural feel. A functional service bar with an additional wine fridge, separates the living and dining areas. The cozy family room with fireplace, full house entertainment center, breakfast nook and 4 seat breakfast bar, sits adjacent to the tastefully upgraded all electric kitchen that serves it up just right with it's two, floor to ceiling food pantries. Enjoy stainless steel GE Profile appliances, double basin stainless sink with other standard options and Delta AI water faucet accompanied by a matching cabinet paneled sub zero refrigerator / freezer with icemaker. There is plenty of counter space for cooking and entertaining, plenty of storage, with cabinet interiors offering pullouts and lazy Susan access for maximum efficiency. A skylight sits above the convenient center island with its additional storage cabinets electrical access, spice and supply drawers. Another great spot to serve or prepare a future meal. There are Saltillo tiles and high end plantation shutters throughout - even a central vacuum system. The interior laundry room with stainless laundry sink and third bathroom have sophisticated, decorative wallpaper. The added bonus here is the double insulated, two and a half car garage that comes in at over 430 square feet, with a brand new epoxy coated floor, built in storage and tech-savvy, lift master garage door opening and closing mechanism. There is also a 250 square foot finished attic space just above the garage, with garage access. You have the option to HVAC climate-controlled this space, which also has a remote control ceiling fan. This area can also serve as a workshop, artist studio, craft space or even a man cave. Please check out our online brochure and video links for more info. We look forward to seeing you soon. Your new home awaits!

14840 E Valley Vista Drive Fountain Hills, AZ 85268

$1,814,999
4 Beds
3.5 Baths
4,046 SqFt
Status Active
MLS # 6671685
Property Type Single Family Residence
Price Type --
Hillside New Model Home for Sale! Nestled at the end of a long, private driveway, this stunning home combines the ease of single-level living with the added luxury of a walk-out basement. The main floor boasts a grand great room with soaring 12' ceilings and expansive picture windows that frame breathtaking views. The gourmet kitchen flows seamlessly to a spacious covered terrace, perfect for taking in the stunning valley and landscape at Crestview. Located conveniently near the Scottsdale border, this home offers easy access to all the best the area has to offer. The main level also features a serene primary suite, a dedicated office, a secondary bedroom with en-suite bath, and a spacious laundry room. The walk-out basement surprises with a generous media room and... two additional bedrooms, providing a private retreat for guests. Discover this exceptional home and vibrant community today!

23686 N 126th Place Scottsdale, AZ 85255

$1,814,297
3 Beds
3.5 Baths
3,124 SqFt
Status Active
MLS # 6777692
Property Type Single Family Residence
Price Type --
NEW CONSTRUCTION: WINTER 2025 COMPLETION! Buyer can select interior finishes! This stunning home features a Guest Casita with a private entrance, an expanded 2-Car Garage with pre-wiring for a 60amp 240v charger, and garage storage. The open-concept Kitchen, Dining, and Great Room are perfect for entertaining, featuring a 15' Sliding Glass Pocket Door and a modern 60'' Primo Fireplace. The Primary Suite serves as a serene retreat with direct access to the covered back patio. The luxurious Primary Bath includes a dual-sink vanity, soaking tub, a spacious shower with a rainhead, and a large walk-in closet. Experience low-maintenance LUXURY in the guard-gated Sereno Canyon community by Toll Brothers. Tour today!

12734 E Casitas Del Rio Drive Scottsdale, AZ 85255

$1,812,995
3 Beds
3.5 Baths
2,451 SqFt
Status Active
MLS # 6733956
Property Type Townhouse
Price Type --
NEW CONSTRUCTION - ESTIMATED COMPLETION JANUARY 2025. Modern, Desert Contemporary style architecture. This 3 bedroom 3.5 bath with study offers ample space for entertaining. The Palmer is situated on a desirable lot with unique exteriors. Delight in the details of an inviting foyer that flows into an expansive great room and dining room leading to a wrap-around, covered back patio offering beautiful sunsets and mountain views. The well-designed kitchen is equipped with a large center island and breakfast bar with abundant counter and cabinet space. The beautiful primary bedroom suite is enhanced by a large walk-in closet, deluxe primary bath with dual sink vanity, large soaking tub, glass-enclosed shower & private water closet. Landscape includes spool, outdoor kitchen and fire feature.

3179 E Portola Valley Court Gilbert, AZ 85297

$1,810,000
5 Beds
4 Baths
4,200 SqFt
Status Active
MLS # 6754463
Property Type Single Family Residence
Price Type --
Discover this stunning 5-bedroom Tuscan Gem in a gated community on a peaceful cul-de-sac! The property boasts an impressive 1,196 sq ft, 4-car garage, an attractive paver driveway, an RV gate, eye-catching Cantera stone accents, an impeccably maintained landscape, and a charming front porch. Inside, you will find 10-14' coffered ceilings, floor-to-ceiling windows that flood spaces with natural light, and elegant travertine tile flooring. The inviting great room has a striking stone-clad fireplace for cozy evenings and a wet bar for entertaining. The formal dining room is designed to host memorable gatherings with loved ones. Double doors lead to a den, ideal for an office or study. The Primary bedroom offers plush carpeting, a romantic stone-clad fireplace, and a spa-like ensuite with dual vanities, a jetted tub, and a walk-in closet. Cook delicious meals in the gourmet kitchen, complete with gleaming granite counters, abundant white shaker cabinetry with crown molding, a custom tile backsplash, sleek stainless-steel appliances, inclusive of 2-premium dishwashers, pendant/recessed lighting, a walk-in pantry, and a two-tier island with a breakfast bar for casual dining. The enchanting hugh backyard showcases a covered patio for shade on sunny days, a gazebo for outdoor dining, a built-in BBQ, a warm fire pit with a sitting area, and a sparkling gas heated pool (41' long by 7' deep), a stone grotto, ramada, outdoor grill, grass area and RV gate for storage. Security Camera System (16 Cameras), Alarm System, and remote security window coverings (Roller Shades on Primary BR windows), Whole House Water System, including RO water, New Custom Garage Doors - Insulated (includes Elite maintenance package on doors until 11/2026). Make this masterpiece yours today! See document page for upgrades.

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