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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2799 E Jade Place Chandler, AZ 85286

$1,500,000 - 4Br/4Ba -  for Sale in Whitewing At Krueger, Chandler
Open House
$1,500,000
4 Beds
3.5 Baths
3,933 SqFt
Status Active
MLS # 6742990
Property Type Single Family Residence
Price Type --
As seen on American Dream TV! Experience luxury living at Whitewing! This exquisite 4-bedroom, 3.5-bathroom home, with a den is nestled within an exclusive gated community. This home boasts 3,933 sqft. of tastefully updated living space on a sprawling 18,750 sqft lot. Highlights include new Bosch A/C units, new carpet & wood floors, Tesla charger, office built-ins, built-in fridge, and marble tiles. Gorgeous Cantera stone accentuates the charming fireplace as well as the half-bathroom sink. The kitchen features a wall oven, a built-in refrigerator, a walk-in pantry, granite countertops, and a kitchen island. Enjoy formal dining or a quick meal at the breakfast bar. Step outside to a covered patio that overlooks a Home & Garden inspired backyard, complete with retractable shades, rock-waterfall pool feature, outdoor garden, landscape lighting, additional water feature, misters, built-in gas fireplace & barbecue grill and outdoor bar, 2 ramadas ideal for entertaining. Bonus fruit trees - lemon, pomegranate, blood orange, and clementine! Additional features include a 3-car garage with cabinets and an RV gate. This home offers unparalleled luxury, comfort, and privacy. Don't miss out on this exceptional opportunity!

6711 E Camelback Road Unit 58 Scottsdale, AZ 85251

$1,500,000 - 2Br/2Ba -  for Sale in Pavoreal Replat Amd, Scottsdale
Open House
$1,500,000
2 Beds
2 Baths
2,207 SqFt
Status Active
MLS # 6772800
Property Type Single Family Residence
Price Type --
Step into Scottsdale luxury living at its finest with this beautifully designed 2-bedroom, 2-bathroom residence, previously featured on the cover of Luxe Magazine. Whether furnished or unfurnished, this home is the definition of sophisticated living and is located within walking distance of Scottsdale's premier destinations—Fashion Square, Mastros City Hall, and Ocean 44—as well as the Valley's best hiking trails. The home's contemporary design showcases top-of-the-line finishes, from Sub-Zero and Wolf appliances, custom cabinetry, and block wall construction to energy-efficient windows and doors. The open floor plan features a great room with high ceilings, a gas fireplace, and no interior steps. The private backyard is surrounded by mature Ficus trees, artificial turf, and a water feature, perfect for relaxation or entertaining. Located in the exclusive, gated Pavoreal community with 24-hour guard services, residents have access to resort-style amenities including a heated pool, spa, and clubhouse. This is the ideal lock-and-leave property for those seeking a low-maintenance lifestyle in an A+ location. Key Features: 2 bedrooms, 2 bathrooms + den/office Approx. 2,207 sq. ft. of living space Gorgeous backyard with water feature Modern kitchen with high-end appliances Block wall construction with upgraded windows and doors Located in the prestigious, gated Pavoreal community Walking distance to Scottsdale's top restaurants, shopping, and entertainment Minutes from world-class hiking trails Don't miss the opportunity to purchase this beautiful home.

5714 E Paradise Lane Scottsdale, AZ 85254

$1,499,999
6 Beds
3 Baths
2,999 SqFt
Status Active
MLS # 6769700
Property Type Single Family Residence
Price Type --
Owner Financing Available! Welcome to your dream oasis in the heart of Scottsdale, where luxury meets location! This stunning property, located just a stone's throw away from Kierland Mall, offers an amazing opportunity to make this home an ideal Lock and Leave, Primary Residence or Short Term Rental. With 6 bedrooms and 3 baths, this spacious home is designed to accommodate your every need. Vaulted ceilings, open concept living space, fully renovated kitchen and baths, tile flooring throughout with an incredible resort back yard. Entertain friends and family in your private oasis with a heated pool. Sharpen your putting skills on your very own putting green and relax on the large covered porch. Management in place by GoodNight Stay, incredible income, run as a Short Term Rental.

8619 N 192nd Avenue Waddell, AZ 85355

$1,499,999
3 Beds
3 Baths
3,485 SqFt
Status Active
MLS # 6724959
Property Type Single Family Residence
Price Type --
This custom-built home is located at the base of the White Tank Mountains in the prestigious Sonoran Ridge Estates. It is a stunning, well-maintained 3-bedroom 3-bathroom home that blends modern luxury and serene living. Nestled on a spacious 1.4-acre lot with breathtaking views of the White Tank Mountains from the front with a peaceful, unobstructed, dwelling-free natural landscape from the rear. This property provides a unique opportunity to enjoy the best of Arizona's natural beauty while close to schools, shopping, and thoroughfares. As you step inside, you'll be greeted by a bright and open floor plan with high ceilings and large windows that flood the space with natural light. The gourmet kitchen is a chef's dream, featuring top-of-the-line stainless steel appliances, granite countertops, a large center island with a cooktop, a built-in warming station, and more than ample cabinet space. The adjoining dining area and living room are perfect for entertaining guests or enjoying family time. Special touches include artistic ambient theater-like ceiling lighting, whole house music speakers, and a living room with a dramatic back-lit custom-built interpretation of the nearby White Tank Mountains! The master bedroom suite is a true retreat with a walk-in closet and an en-suite bathroom that includes 2 separate sinks and cabinets, a large jacuzzi soaking tub, and a large, tiled snail shower. The additional 2 bedrooms are generously sized and offer plenty of closet space. There's also a large executive office with 2 built-in desks, multiple built-in cabinets, and shelving that can easily support any in-home business. The office also has a built-in Murphy bed that can be used for guests or as a 4th bedroom. Step outside to your gorgeous fully fenced private backyard oasis. It has 2 covered patios, lush mature landscaping, and a built-in stone island featuring a gas barbecue, sink, and refrigerator. Walk down the lighted grand staircase that leads to a low-temperature concrete walkway and a large custom-built saltwater swimming pool. Additional features of this exceptional home include a large three-car garage with a dedicated workspace for auto and hobby enthusiasts, a laundry room with storage, and energy-efficient upgrades. Located in a peaceful neighborhood with convenient access to schools, Arizona state Route 303, shopping, dining, and recreational activities like the newly opened restaurant The Corral which offers music events and delicious food. Once outside the estate gates, the entrance to the White Tank Mountains Regional Park is a few minutes up the road. Visitors can hike, walk on dog-friendly trails, view ancient petroglyphs, and view hundreds of species of plants and animals that include thousands of gorgeous flowering Sonoran Saguaro cactus. This is the perfect place to call home. Don't miss out on the chance to make this beautiful property yours!

32633 N 137th Street Scottsdale, AZ 85262

$1,499,999
4 Beds
3.5 Baths
3,903 SqFt
Status Active
MLS # 6719842
Property Type Single Family Residence
Price Type --
Discover an Amazing opportunity to own a Gorgeous Custom Built Luxury Home in the Peaceful Sonoran Desert. Situated on almost two acres, this property offers Breathtaking 360-degree Views with incredible High-End Luxury Finishes throughout. Adjacent to the Scottsdale Sonoran Preserve, enjoy access to miles of trails for hiking, mountain biking, and horseback riding right from your backyard. With multiple trailheads within walking distance, adventure awaits at The Tom's Thumb and Fraesfield trailheads just a short drive away. For off-road enthusiasts, ATV/UTV, dirt biking, and off-road vehicle trailheads are also nearby. Conveniently located just three miles from the exclusive Scottsdale National Golf Club and six miles from the Tonto Verde Golf Club, this home is a golfer's paradise. A short drive to West World and some of the world's finest dining and shopping establishments, this location offers the perfect blend of luxury and convenience. This home must be seen to be truly appreciated because the finishes are truly incredible.

19650 E Jeanna Court Queen Creek, AZ 85142

$1,499,999
3 Beds
3.5 Baths
3,898 SqFt
Status Active
MLS # 6732118
Property Type Single Family Residence
Price Type --
Welcome to your dream home nestled in the heart of tranquility and luxury in Whitewing at Whisper Ranch. This exquisite three-bedroom residence combines designer touches with unparalleled outdoor amenities, offering a lifestyle of comfort and sophistication. Designer finishes and meticulous attention to detail throughout. The great room is adjacent to the dining area and gourmet kitchen- which is a culinary masterpiece, boasting top-of-the-line appliances, quartz countertops, and two center islands ideal for both casual dining and entertaining guests. Don't miss the center courtyard with dual access points and fall in love with the designer lighting and custom touches throughout. The primary suite is a serene retreat, complete with a spacious bedroom area, a walk-in closet, and an en-suite bathroom featuring a soaking tub and a separate glass-enclosed shower. Two additional bedrooms (each with en-suite baths) offer ample space for family or guests, each thoughtfully designed with comfort in mind. The home's large flex space is perfect for an exercise area, home theatre (it is prewired!) or huge playroom. Beyond the interior lies the true jewel of this property: an expansive backyard oasis. Step outside to discover a resort-like setting featuring travertine patio and a sparkling pool for refreshing dips on sunny days (it's heated for chilly days too!). Adjacent, a luxurious spa invites you to unwind under the stars. The outdoor kitchen, tucked under a large pergola, is equipped with a built-in grill and ample counter space, beckoning you to indulge in al fresco dining experiences. The landscaping with artificial turf, enhances the ambiance, creating a private paradise that is perfect for relaxation and entertaining. Fenced dog run located on one of two oversized sideyards, while your second sideyard features an RV gate with plenty of space to store your toys! HOA allows for casita or RV garage construction in sideyard too! Experience the epitome of luxury living in this meticulously designed home with unparalleled outdoor amenities. Whitewing at Whisper Ranch is a gated community featuring children's play area, clubhouse with communal kitchen and seating, dog run and more, located just minutes from Queen Creek's dining, shopping and entertainment areas.

34642 N 52nd Street Cave Creek, AZ 85331

$1,499,995
2 Beds
2 Baths
1,935 SqFt
Status Active
MLS # 6753929
Property Type Single Family Residence
Price Type --
LOCATION ! LOCATION ! LOCATION ! Beautifully updated Home on 2.5 acres in the charming fun town of Cave Creek! Walk to Starbucks, restaurants, shopping and Golf..So convenient !! While still enjoying the luxury of your own ranch..Horseback Riding, biking and hiking trails take you into the Cave Creek Preserve from your driveway! Room for all your Horses and a spot ready to build a full size Roping Arena(with engineered plans) Features a brand new never been used Gourmet Chefs Kitchen TOP of the line appliances including a ZLINE natural gas range. Fantastic fenced backyard with a sparkling blue pool all ready for your finishing touches. New Flooring with southwest flair, Natural stone fireplace/gas insert. Make this your Winter Resort destination or Stay all year!!

3743 E Hazelwood Street Phoenix, AZ 85018

$1,499,995
3 Beds
2 Baths
2,167 SqFt
Status Active
MLS # 6756925
Property Type Single Family Residence
Price Type --
Premium lower Arcadia opportunity on Hazelwood. Well cared for three bedroom and two baths plus office sits on 11,966 square foot lot including mature landscaping, large pool, barbeque area and a finished casita. Wonderful master suite with huge dual shower and walk in closet. Situated in one of the most desirable neighborhoods in Phoenix. Large .27 acre private lot is mid-block with no alley. Full remodel and addition completed in 2011 on this 2,167 sq ft home. This is a rare opportunity for a buyer to purchase a move-in ready home on Hazelwood at this price point. Otherwise, its a prime lot for a custom home.

14437 N Valencia Drive Fountain Hills, AZ 85268

$1,499,995
3 Beds
3.5 Baths
2,573 SqFt
Status Active
MLS # 6717380
Property Type Single Family Residence
Price Type --
This popular Marden floorplan is ready to move in this fall. This home offers 2 bedrooms in the main house, separate office plus an attached casita for guests and a 3 car garage! Open concept floor plan is great for entertaining with sliding glass door to covered patio for indoor outdoor living. The kitchen boasts a huge island, Wolf appliances including 36'' cooktop and double ovens with 48'' Sub-Zero refrigerator. Enjoy the ambiance of the 60'' liner fireplace in the great room. Luxurious primary suite includes spacious walk-in closet, bathroom has dual vanities, walk-in shower and separate soaking tub. Imagine enjoying the upcoming holiday season in this amazing home!

23730 N 125th Place Scottsdale, AZ 85255

$1,499,995 - 3Br/3Ba -  for Sale in Sereno Canyon Parcel J Phase 4 Lots 177-194 & Trac, Scottsdale
Open House
$1,499,995
3 Beds
3 Baths
2,222 SqFt
Status Active
MLS # 6612078
Property Type Townhouse
Price Type --
Modern, Desert Contemporary style architecture! This open floor plan offers ample space for entertaining. Beautiful front and backyard landscaping with views of Troon Mountain and close proximity to the Mountain House Lodge Community Amenity. The Caullins' welcoming covered entry and inviting foyer reveals the spacious great room and dining room, with views of the large covered patio beyond. The well-designed kitchen is equipped with a large center island with breakfast bar, plenty of counter and cabinet space. The beautiful primary bedroom suite is highlighted by a huge walk-in closet and deluxe primary bath with dual-sink vanity, large soaking tub, luxe glass-enclosed shower with seat, and private water closet. Landscaping includes water feature, fire feature and built-in BBQ.

1657 E Minton Street Mesa, AZ 85203

$1,499,990
4 Beds
3.5 Baths
3,499 SqFt
Status Active Under Contract
MLS # 6750153
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the heart of Mesa! This stunning 4-bedroom, 3.5-bathroom home is currently under construction and scheduled for completion by the end of September. As you step inside, you are greeted by an open-concept floor plan that seamlessly connects the living, dining, and kitchen areas, creating a spacious environment perfect for both family living and entertaining. The gourmet kitchen features high-end stainless steel appliances, upgraded cabinet lighting, a large center island, and ample cabinetry for all your storage needs. Conveniently located just off the garage, the spacious pantry is designed with efficiency and organization in mind, making it the perfect solution for easy access and storage after shopping trips. The home also features a thoughtfully designed rear bathroom with dual access from both inside and outside, offering ultimate convenience for outdoor activities. Additionally, a charming bonus room provides versatile space that can be tailored to your needs, serving as the perfect extension of your living area. The luxurious master suite is a true retreat, complete with a walk-in closet and a spa-like en-suite bathroom that boasts dual vanities, a makeup vanity, a soaking tub, and a separate glass-enclosed shower. Outside, the backyard is a blank canvas ready for your personal touch, whether you envision a serene garden, a sparkling pool, or an outdoor entertainment area. With a prime location in Mesa, you'll enjoy easy access to the 202 Freeway.

491 N 159th Place Gilbert, AZ 85234

$1,499,950 - 3Br/2Ba -  for Sale in Circle G Ranches 2 & 2a, Gilbert
New
$1,499,950
3 Beds
2 Baths
2,335 SqFt
Status Active
MLS # 6777056
Property Type Single Family Residence
Price Type --
Circle G Ranch GEM. Every inch of this acreage home has been updated. The open and airy floorplan is an entertainer's dream. The custom kitchen boasts a large island and stunning walnut bar top, coffee bar, built-in hutch, corner nook that overlooks the roomy family room with beautiful fireplace. There are tons of custom cabinetry, and the walk-in pantry is an organizer's dream. Enjoy the library/office with built-in shelves while gazing out the window to your beautifully landscaped front yard. The back yard is straight out of a magazine. Step onto the massive travertine back patio and follow the winding travertine paths all throughout the yard. Enjoy the warm temps with a huge custom pool, swim up bar with top-of-the-line grill, huge waterfall with slide and a grotto. For cooler temps enjoy toasting marshmallows around the elevated built-in firepit area. The expansive grassy backyard also offers a workshop with electrical, a shed, and your very own pickleball court and basketball half-court. There is even room for an RV with 220v electric. All of this luxury is surrounded by a block wall and huge trees for the ultimate privacy. The car enthusiast will love the updated and climate controlled four car garage. Or use some of the space for a workout room, man cave, craft room, or extra living space. This home is in move-in condition and offers a new AC unit, new roof, upgraded electrical panel, new windows, new water heater, whole house water softener/filtration and tile throughout.

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