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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16030 E Cholla Drive Fountain Hills, AZ 85268

$1,325,000

4 Beds

3.5 Baths

4,856 SqFt

Status Active

MLS # 6775334

Property Type Single Family Residence

Price Type --

Welcome home! This property sits on a spacious 1.3-acre elevated corner lot in Fountain Hills, offering breathtaking views in every direction. Don't miss this incredible opportunity with huge potential and no HOA. It's rare to find views like these at this price point. The home features 4 bedrooms, 3.5 bathrooms, a large kitchen with stainless steel appliances, a negative edge pool, a 2-car garage, a circular driveway, and a wraparound view deck for endless enjoyment.

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7805 E North Lane Scottsdale, AZ 85258

$1,325,000

4 Beds

2 Baths

2,576 SqFt

Status Active

MLS # 6779858

Property Type Single Family Residence

Price Type --

Did someone ask for a beautifully remodeled home with great curb appeal in Scottsdale? Here's a 1 story home on a corner lot that will take your breath away. You'll fall in love with the soaring ceilings covered in beachwood and exposed beams, skylights and the central fireplace in this Great Room. The kitchen is beautifully remodeled, providing plenty of seating for family and entertaining with breakfast bar, breakfast room, and dining area. The Primary Bedroom is thoughtfully designed with a tray ceiling, beehive fireplace, and ample space. The Primary Bathroom has a floating double sink vanity, walk-in closet, and custom tile/glass showerdirect, along with private entry to the backyard/pool area. The backyard/pool space has a 40'x12' covered patio, built in BBQ, and pool shower

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2072 E Blackhawk Court Gilbert, AZ 85298

$1,325,000

4 Beds

4 Baths

3,897 SqFt

Status Active

MLS # 6771468

Property Type Single Family Residence

Price Type --

Stunning and meticulous home in the exclusive gated, one-story community of Marathon Ranch. Situated on a 12,600 square foot cul-de-sac lot, this highly upgraded home has room for everyone with 4 bedrooms, 4 bathrooms, and 4 car garage plus a formal dining room, separate office, and game room. You will love the majestic views of the San Tan Mountains and the community exercise trail along the canal just steps away. Enjoy privacy with mature trees and shrubs around the property creating a serene connection with nature and the outdoors. Upon entering the foyer, you will be greeted with a dramatic view of the pool and backyard. The great room with coffered ceilings, surround speakers, and 20' sliding glass door offers the ultimate in relaxation and entertainment. Adding to the great room ambience is the floor to ceiling stone fireplace with electric heat, on or off, and flame with changeable colors. The rear covered patio, fire pit, heated pool, and artificial turf show off the backyard with clean and crisp perfection. The kitchen is any chef's dream with under cabinet lighting, 5 burner gas cook top, double ovens, large pantry, and cabinets galore. All bedrooms have walk-in closets and the primary has his and hers closets. One of the garages is tandem providing extra depth with a 220V 50amp outlet and both garages have epoxy floors and overhead storage racks. What a perfect space for the entire family all on one level with a fully wired security system and too many perks to mention. Gilbert is continually ranked as one of the safest towns, and this area has a charming rural feel but is still in close proximity to highly rated schools, retail, parks, and the AZ-202.

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18714 E Ironwood Circle Rio Verde, AZ 85263

$1,325,000

3 Beds

2.5 Baths

3,172 SqFt

Status Active

MLS # 6779258

Property Type Single Family Residence

Price Type --

Quality home, meticulously cared for in gated Tonto Verde. Starting with the beautiful white exterior, a gated front courtyard with mountain views, then enter this warm designer home with gorgeous wood floors and elegant smooth skim coating on the cream colored walls. The kitchen has all new appliances. The dining room has a custom light fixture to illuminate the magnificent round table that will be included with the purchase. The primary bedroom is oversized with and extra bonus room for exercise, craft, sewing or a private office.The 2nd bedroom is so large it could be considered a second primary suite. The 3rd bedroom is set up as an office with could be a bedroom with a nice walk-in closet.The backyard is a resort with a private pool & spa and the 3 1/2 car garage with epoxy surface.

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3137 E La Costa Court Gilbert, AZ 85298

$1,320,000

4 Beds

3.5 Baths

3,514 SqFt

Status Active

MLS # 6775639

Property Type Single Family Residence

Price Type --

Experience luxury living in your dream home, nestled within an exclusive gated community in Gilbert with stunning mountain views. This elegantly designed residence boasts a split floor plan with expansive master suite, located on one side of the home, features beautiful wood floors, built-in surround sound, and access to the back patio. Indulge in the luxury of two spacious closets, an oversized bathroom with dual vanities, a soaking tub, and a separate shower. The open-concept layout includes family room, dining area, and gourmet kitchen, fully equipped with Monogram appliances, including a 72'' refrigerator, dual dishwashers, a 6-burner cooktop with griddle and chef pantry. The family room, with gas fireplace, wood mantle and surround sound, offers the perfect space for entertainment. In addition to two spacious en-suite bedrooms, the home offers a versatile third bedroom that can easily function as an office. The generous laundry room provides space for dual washers and dryers or an additional freezer. Car enthusiasts will love the 4-car garage, complete with epoxy flooring, a new water heater, and an RV gate. Outside, the backyard oasis awaits, featuring a Pebble Tec pool with a cascading waterfall, an above-ground heated spa, and a built-in pergola with built in BBQ, surrounded by mature citrus trees and artificial turf offering the ultimate relaxation with picturesque mountain views.

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13110 W Denton Street Litchfield Park, AZ 85340

$1,320,000

5 Beds

3.5 Baths

5,055 SqFt

Status Active

MLS # 6766234

Property Type Single Family Residence

Price Type --

Grand Estate Living in Barrington Estates! Gorgeous sprawling 5 bedroom, 3.5 bathroom residence offers over 5000 square feet of luxurious living space with OWNED 52 panel SOLAR on a 3/4 acre corner lot in gated community. A complete renovation in 2020 is what sets this custom apart. Step inside and be greeted by a grand 20 ft high foyer entry with lovely staircase and custom railing. The spacious open floor plan seamlessly connects the great room, kitchen, and game room, creating an ideal space and flow for entertaining. The kitchen's centerpiece is a custom quartzite slab island with seating for six, and the butler pantry allows for convenient storage and serving. The private downstairs EnSuite will be loved by guests or loved ones.Retreat to the tranquil MORE... primary suite with an adjoined private paneled office & walk-out deck overlooking the backyard oasis. The spa-like primary bath features an elegant free standing soaking tub, a separate clear glass shower, and his-and-hers walk-in closets. As stunning as the interiors of this home are, what's on the outside truly epitomizes Arizona living. Enjoy endless outdoor recreation with a private 34'x60' pickleball/basketball court, a resort-style heated pool & spa that is shaded in late afternoon by a 20x20 ramada, an expansive travertine wrap around patio, and custom outdoor kitchen. Additional features include a 19x21 bonus theater or billards room, 4-car epoxy extended length garage, and RV gate leading to your future detached out building. The sellers had drawings rendered for their future detached casita and are included in the sale. This estate is located minutes away the world-renowned Wigwam Golf Resort. Come experience!

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630 W Echo Lane Phoenix, AZ 85021

$1,319,500

4 Beds

4.5 Baths

3,442 SqFt

Status Active

MLS # 6649400

Property Type Single Family Residence

Price Type --

Step into this gorgeous home conveniently tucked in a gated enclave of boutique semi-custom homes in an amazing location w/in the popular Phoenix Central Corridor. The open kitchen + great room concept has soaring 22ft ceilings, featuring a Chef's dream kitchen w/ full slab island, 6-burner gas cooktop & oven, dedicated ice maker, wine fridge, & spacious walk-in pantry. The luxurious master suite is on the main level w/ an expansive walk-in closet, dual vanities, & beautiful shower / tub combination. The split floor plan has an upper level w/ 3 oversized bedrooms, 3 full bathrooms, generous laundry room, multi-use loft, & 2 balconies. The backyard is an entertainer's paradise w/ a large covered patio, low maintenance synthetic lawn, & sparkling heated pool & spa w/ mountain views (MORE) plenty of room to roam for both kids & pets. Additionally there is a 3-car tandem garage with builtin EV charger. The home is also conveniently positioned close to restaurants, shopping, entertainment and easy freeway access. Don't wait!

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28217 N 139th Street Scottsdale, AZ 85262

$1,315,000

4 Beds

2.5 Baths

3,281 SqFt

Status Active

MLS # 6774444

Property Type Single Family Residence

Price Type --

Living in the desert offers a unique blend of natural beauty, tranquility, and adventure. This home, with its large east-facing windows, is perfect for enjoying stunning sunrises over the Four Peaks, while sunsets can be admired from the rooftop deck. Located just 10 minutes from Tonto National Forest and numerous trailheads, it's ideal for hiking and biking enthusiasts. The yard often welcomes wildlife such as eagles, owls, and hummingbirds. Enjoy the pool for relaxation and stargazing at night. The yard features fruit trees, a raised garden, and low-maintenance irrigation. With efficient cooling systems and friendly neighbors, it's a peaceful and convenient place to live, close to great dining, shopping, and recreational spots like Scottsdale, Fountain Hills, and golf courses.

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2945 W Trail Drive Phoenix, AZ 85086

$1,315,000

4 Beds

3 Baths

3,107 SqFt

Status Active Under Contract

MLS # 6693685

Property Type Single Family Residence

Price Type --

This fantastic, 3100+ SF, single story custom home in North Phoenix is a must see! Acre lot at the end of a cul-de-sac, NO HOA, great views & loads of fabulous upgrades, including travertine flooring, 10 ft. ceilings, gourmet kitchen w/ double ovens, Wolf induction cooktop, granite countertops, wine fridge, island w/ sink & lots of storage space! Gas fireplaces in both the spacious family room featuring soaring 14 ft. beamed ceiling, and the primary suite boasting of a snail shower, spa tub, dual sinks & walk-in closet! 2 new AC units, 3-car garage and a separate 1100 SF RV garage/shop with AC & 1/2 bath! Fully landscaped desert front & back yards with w/ oasis like custom pool, putting green, huge covered patio w/ grill area and more to see including the amazing mountain views!! Just minutes to Tramonto, Anthem, EZ freeway access and less than 30 minutes to Lake Pleasant!

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10445 W Navigator Lane Peoria, AZ 85383

$1,310,000

5 Beds

3 Baths

3,231 SqFt

Status Active

MLS # 6660063

Property Type Single Family Residence

Price Type --

Estimated completion 14 months from contract. New community by Canavest Group with each lot having the ability to be fully customizable to your liking and finishes to your selection. Ironwood Estates in Peoria, AZ offers a luxurious living experience in a serene desert setting. This fully improved exclusive 6 lot community features spacious single-family homes with modern amenities and high-end finishes. With 4 lots ½ acre and 2 lots ¾ acres residents can enjoy stunning mountain views, beautifully landscaped yards, and access to community parks and walking trails. With its convenient location near shopping, dining, and entertainment options, Ironwood Estates provides the perfect blend of comfort and convenience for those seeking a sophisticated lifestyle in the heart of Peoria

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32278 N 168th Avenue Surprise, AZ 85387

$1,300,000

4 Beds

4 Baths

3,630 SqFt

Status Active

MLS # 6741875

Property Type Single Family Residence

Price Type --

This custom Modern Farmhouse features 4 bedrooms and 3 ½ baths, including an office, and boasts a 2-car garage along with a large RV garage on a lot exceeding 1 acre. The home includes a massive great room with a fireplace, a large chef's kitchen equipped with upgraded energy-efficient appliances, electric and propane gas hookups, and custom cabinets with a large island. The kitchen also features a walk-in pantry with cabinets and a water hookup for a portable ice machine. A separate laundry room with a sink and space for an additional refrigerator with a water hookup. The primary bathroom includes a fireplace, a separate walk-in shower with custom tile, a luxury sit-in tub, his and her vanities, and a large walk-in closet. Each bedroom has a walk-in closet, with one bedroom featuring a Jack & Jill bathroom and the others having a separate bathroom. Custom tile is laid throughout the home, including the bathroom tub and shower surrounds, which also feature upgraded faucets. The home also features an electric tankless water heater with the option to switch to gas/propane. The entry door is a large, custom-iron secure door. Additionally, the home has a full-back covered patio with bifold doors. This home is adorned with upgraded light fixtures throughout, including a large chandelier at the entry. The lot is enclosed with block wall fencing surrounding the premises.

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145 S Bonito Ranch Loop Cornville, AZ 86325

$1,300,000

3 Beds

2.5 Baths

2,599 SqFt

Status Active

MLS # 6757670

Property Type Single Family Residence

Price Type --

Step into a world of charm with this stunning NEW CONSTRUCTION residence. A grand covered porch invites you to experience modern farmhouse living, accentuated by porcelain tile white oak flooring throughout. The 30-ft-high peaked metal roofline and clerestory windows fill the open-concept great room and entertainer's kitchen with an abundance of natural light. The kitchen is a culinary masterpiece, featuring a WOLF induction cooktop, double ovens, a coffee bar, and a quartz island seating 8. White cabinets with illuminated uppers and a farmhouse sink create a space where functionality meets elegance. Off the great room, discover an enclosed patio with a floor-to-ceiling fireplace, perfect for cozy evenings. A spiral staircase leads to a loft with sweeping views. The true magic lies in the subdivision amenities. Rio Bonito Ranch is a gated community with paved roads and provides owners private access to Oak Creek, a stocked community pond and Mason Lane Ditch that wanders around the whole subdivision like a mountain stream. The community has well established water rights, incredible sunset, mountain and valley views as well as dark sky and Jerome lights at night. It's location is minutes from Page Springs Cellars and other local wineries and only 20 minutes from West Sedona.

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