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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2477 E Page Avenue Gilbert, AZ 85234

$1,298,000
4 Beds
3.5 Baths
3,941 SqFt
Status Active Under Contract
MLS # 6772185
Property Type Single Family Residence
Price Type --
Step into luxury with this stunning 4-bed, 3.5-bath estate, where elegance meets modern living. Greet guests in the grand entryway, setting the tone for the spacious, open-concept design. The gourmet kitchen, adorned with high-end finishes, invites culinary exploration, while the adjacent living area features a statement fireplace. Retreat to the primary suite, a sanctuary with a lavish spa bathroom and freestanding tub. Outdoors, indulge in resort-style living with a sparkling pool and built-in BBQ. This home is a masterpiece of comfort and sophistication.

588 E Peach Tree Street Queen Creek, AZ 85140

$1,297,900
2 Beds
2.5 Baths
2,367 SqFt
Status Active
MLS # 6733421
Property Type Single Family Residence
Price Type --
This Palermo floorplan creates the perfect indoor and outdoor space. The expansive kitchen with its large center island is a chef's dream, providing ample space for culinary creations and gatherings. This home offers a spacious primary suite, ensuring both comfort and privacy. The thoughtful addition of a ''smart space'' housing laundry facilities and cabinetry further enhances the convenience and functionality of daily living. Both bathrooms have been upgraded with tile surrounds and beautiful light fixtures. Additional features include shutters, a carpet-free environment and gorgeous views of the golf course. The secondary bedroom is also expanded for your guests. Start living the Good Life at Encanterra today!

1295 Running Elk Road Payson, AZ 85541

$1,295,855
6 Beds
4 Baths
4,000 SqFt
Status Active
MLS # 6730079
Property Type Single Family Residence
Price Type --
Welcome to 1295 S Running Elk Rd, a hidden gem nestled under the Mogollon Rim! Prepare to be enchanted by this exceptional property that combines the tranquility of a cabin in the woods with the comforts of modern living. This turn key, move in ready, spacious home boasts six generously sized bedrooms and three and a half bathrooms, providing ample space for the whole family or accommodating guests with ease. (sleeps 30-35) With over 4,000 square feet of living space, there is room for everyone to spread out and enjoy their own private retreat. The oversized covered front porch and back deck offer unparalleled mountain views and fresh mountain air. Situated on a sprawling 3.65-acre lot, this property is a nature lover's paradise. The expansive grounds back onto the national forest, offering unparalleled privacy and a breathtaking backdrop of pristine wilderness. Explore the beauty of the great outdoors right from your doorstep, with hiking trails, wildlife sightings, and several rim lakes and rivers waiting for you to explore and enjoy. Equestrian enthusiast? Bring your horses and ride for days! One of the highlights of this property is the fishing pond, providing a serene oasis where you can cast your worries away and immerse yourself in the joys of angling. Whether you're an experienced angler or simply enjoy the peaceful ambiance of a tranquil pond, this feature is sure to be a favorite among outdoor enthusiasts. For added convenience and flexibility, this property also offers potential for separate guest quarters. This property presents an incredible opportunity for multi-generational living, allowing different generations to come together and create lasting memories in a peaceful mountain setting. Considering a corporate retreat? This property would be perfect! Alternatively, it can serve as your ideal cabin in the woods, providing a sanctuary where you can escape the hustle and bustle of city life and immerse yourself in the beauty of nature. Don't miss your chance to own this idyllic retreat at 1295 S Running Elk Rd, where the serenity of the forest meets the comforts of a modern home. Embrace a lifestyle filled with relaxation, adventure, and cherished moments in this truly exceptional property. (Property has two private wells but only one is in use. The other is capped off.)

642 E Cornman Road Coolidge, AZ 85128

$1,295,000
3 Beds
2 Baths
1,369 SqFt
Status Active
MLS # 6726835
Property Type Single Family Residence
Price Type --
This property is truly a horse lover's dream with all the amenities you could possibly need. The barndominium styled home is perfect for comfortable living, while the bunk house casitas offer additional space for guests or renters. The outdoor living breezeways with a bar and fireplace are ideal for entertaining and enjoying the beautiful surroundings. The horse set up is top-notch, with 37 covered pipe horse stalls, a full-size roping arena, covered hay barn, workshop, and separate barn office. The 8 RV hookups make it easy to accommodate visitors, and the grounds keeper quarters ensure that everything is well-maintained. Don't miss this incredible opportunity to live the Yellowstone life on 17 acres of deeded & leased land w/ endless possibilities for both work and play. Contact us toda Home has new hurricane rated roof! Arena is 100x200, has newer pneumatic remote control shoots, 30 foot steel walled round pen, the barn has finished drywalled and air conditioned office, private owner tack room, All stalls are 100% covered, boarder 3 wash racks, dog kennels, boarder tack and grain rooms, mechanical shop. 14 acre turn-out as well as additional covered stalls not listed above and covered hay bays large enough to fit several squeezes of hay. Dont let this opportunity getaway the property is minutes from the freeway, in the new Pinal County Corridor of trade, business and progress, perfect for the high tech owners who want extra income, and a great work life balance.!!

8503 S 9th Drive Unit 17 Phoenix, AZ 85041

$1,295,000
4 Beds
3 Baths
3,033 SqFt
Status Active
MLS # 6610457
Property Type Single Family Residence
Price Type --
Introducing Heard Farm at South Mountain, a brand new community of 24 modern farmhouses with sophisticated architecture designed for healthy, sustainable living! Nestled in South Mountain with quick access to downtown Phoenix, Heard Farm seamlessly blends indoor and outdoor living with fresh floor plans designed for the way you want to live. Option for 720 sq ft mezzanine/bedroom above garage (not included in list price.)

4050 Miners Spring Way Wickenburg, AZ 85390

$1,295,000
2 Beds
2.5 Baths
2,596 SqFt
Status Active
MLS # 6760178
Property Type Single Family Residence
Price Type --
Welcome to this stunning custom home, meticulously designed with owned solar, a battery storage and an EV charging port. The finest upgrades and being offered fully furnished with high-end furniture hand picked for this home. Step inside through the elegant custom glass entry doors and be captivated by the open floor plan, flooded with natural light and highlighted by exquisite tile flooring throughout. The living space flows seamlessly into the dining and kitchen areas, adorned with rustic yet sophisticated finishes that create an inviting ambiance. A striking wall of sliding glass doors opens to the covered patio, extending your living space to the beautifully landscaped backyard, complete with an outdoor fireplace, BBQ island, mini fridge, a gorgeous water feature, and plenty of room for entertaining. You'll even have your own Bocce Ball court. The gourmet kitchen is a chef's dream, featuring top-of-the-line appliances, custom cabinetry, and a large island perfect for hosting gatherings. The primary suite is a sanctuary of comfort, showcasing large windows and a spa-inspired bathroom with a custom vanity, a luxurious walk-in shower, and a stunning stand-alone tub. Additional bedroom offers generous space and large windows, making each room feel bright and airy. The custom garage doors add to the home's curb appeal and functionality. One of the garage bays has been turned into a craft studio with its own mini split HVAC system. Every inch of this home reflects exceptional craftsmanship and attention to detail, providing a turn-key opportunity to experience luxury living at its finest. Don't miss your chance to own this unique custom home, fully furnished with exquisite pieces that perfectly complement its elegant design.

8301 E Angus Drive Scottsdale, AZ 85251

$1,295,000
4 Beds
3.5 Baths
2,615 SqFt
Status Active
MLS # 6745058
Property Type Single Family Residence
Price Type --
This stunning residence features engineered hardwood flooring throughout and boasts raised 10-foot ceilings that create an airy, open atmosphere. Custom 18 foot slider that leads to a beautifully landscaped outdoor oasis that features a built-in ramada and grill, multiple citrus tress, a detached gazebo and full privacy with a 15 foot wall of greenery! The kitchen is a chef's dream with marble countertops and high-end Viking appliances. Huge custom master suite with a 10x10 walk in closet and a private secret garden! With four oversized bedrooms and 3.5 elegant bathrooms, this home offers ample space for relaxation and entertaining. This home also has a massive side yard built perfectly for an RV and lastly, paid off solar panels!

22611 W Patton Road Wittmann, AZ 85361

$1,295,000
6 Beds
3.5 Baths
4,179 SqFt
Status Active
MLS # 6761177
Property Type Single Family Residence
Price Type --
Nestled just outside of Surprise in Wittmann, this exquisite custom home offers the perfect blend of luxury living and equestrian convenience. Situated on 2.5 acres of fully walled, private land, this estate is accessible via a paved main road and provides an idyllic retreat with easy freeway access. Step inside to find a beautifully remodeled kitchen (2022) that is a chef's dream, featuring a Forno 8-burner stove with double oven and pot filler, a Forno microwave/convection oven, and a spacious refrigerator—all designed for gourmet cooking and entertaining. The kitchen is complemented by dark wood-stained doors, adding to the home's warm, inviting ambiance. Outside, the property is thoughtfully designed for both leisure and practicality. Enjoy the expansive paved patio area with solar lighting for a peaceful evening outdoors. For horse enthusiasts, the second parcel boasts 3 horse stables, a round pen, and an arena, all equipped with water, fans, and high-speed internet. Additional highlights include a private well with a recently replaced pump and well box, owned and PAID-OFF SOLAR PANELS ensuring low utility costs, a gated entrance for added privacy, and a 4-car garage with an RV charging outlet. The property's central vacuum system adds modern convenience to this serene country estate. With unparalleled amenities, privacy, and high-speed internet, this property is the perfect haven for those seeking luxury and the equestrian lifestyle.

5253 E Palo Brea Lane Cave Creek, AZ 85331

$1,295,000
3 Beds
2.5 Baths
2,376 SqFt
Status Active Under Contract
MLS # 6766681
Property Type Single Family Residence
Price Type --
Luxury Toll Brothers built 3 bed +den, 2.5 bath remodeled home, on a private corner lot. Stunning vinyl flooring throughout, powder room with designer vanity, high-quality upgraded fixtures and fans flow throughout the home. Laundry room features a farm sink. The expansive great room w/ beautiful gas fireplace, custom built-in shelving, great room opens to the eat-in-kitchen featuring premium SS Jenn-air appliances, gas cooktop. large Island, wall oven and lighting. Owner had a decorators eye when adding the walk-in pantry, cabinets to the ceiling with extra lighting, desk in the hallway, bookshelf built into otherwise wasted space, and let's talk about the primary bedroom suite! The full bathroom features separate vanities, lovely soaking tub and tiled oversized walk-in shower. The walk-in closet needs a drum roll entrance featuring cabinets and shelving providing plenty of space for shoes, purses and clothing. Mirrored doors on the closets, make-up desk with the perfect lighting. The backyard is an oasis with the oversized covered patio and inviting pool to relax by. The location of this gated subdivision is situated near shopping, restaurants, golf, easy fwy/hwy access.

10 S Woodridge Way Prescott, AZ 86303

$1,295,000
3 Beds
2.5 Baths
2,519 SqFt
Status Active
MLS # 6706956
Property Type Single Family Residence
Price Type --
This high quality custom built home in the Ranch at Prescott is situated on a large corner lot. The neutral warm tones will be a perfect backdrop for anyone's personal decor. The single story residence has tall ceilings and tons of natural light. The open concept and split floor plan with a separate Office (4th Bedroom), Laundry Room, large Walk in Pantry and spacious 3 Car Garage will certainly ''check'' all of the ''boxes''. There are so many great focal points from the Fireplace in the Great Room to the generous Island and floor to ceiling Cabinetry in the Kitchen. The large Main Suite has a sitting area and fireplace with amazing views of the outdoors. The Walk in Closet and Main Suite Bath with a separate Tub and Shower is light and bright. Engineered Veneer Wood Floors everywhere exc Main Suite Closet which has plush carpeting. Bosch Appliances with a gas cooktop, Zephyr Wine Fridge and Quartz Countertops are featured in the Kitchen. Extensive covered outdoor Patio for entertaining or just sit and quietly enjoy the deer and other forest creatures that will wonder by. Entire home has a Fire Suppression System (fire sprinklers). This is a fantastic walkable location to Trader Joe's, Pine Ridge Marketplace, and Restaurants. The community of Ranch at Prescott has a Tennis Court and walking trails. There is a community Social Club that can be joined for a small annual fee and is not a requirement - just a way for members of the community to plan events together. Property Taxes are currently based on Land Value only.

9220 E Whitethorn Circle Scottsdale, AZ 85266

$1,295,000
3 Beds
3 Baths
2,672 SqFt
Status Active
MLS # 6777879
Property Type Townhouse
Price Type --
Experience unparalleled luxury & a sophisticated lifestyle at The Boulders Resort & Spa. Situated on a coveted golf course lot & set back from the 18th Fairway, this stunning FULLY FURNISHED, TURNKEY villa is a rare gem that combines elegance, comfort & the warmth of home. Whether you're looking for a primary residence, a vacation getaway, or an investment property w/ current residential income potential, this beautifully appointed residence offers the perfect sanctuary for relaxation, entertaining and creating unforgettable memories. Your villa comes tastefully outfitted w/ everything needed to unwind, including ALL furnishings, artwork, linens & household items. Luxurious features & finishes include a gourmet kitchen, an open-concept great room showcasing soaring ceilings w/ vega beams, walls of windows & a gas fireplace. 3BR's/3BA's (two are primary suites) provide spa-like ensuites. The outdoor living area includes a covered patio, outdoor dining space, and a second level sun deck, perfect for taking in the beautiful Arizona sunsets. Enjoy exclusive access to The Boulders Resort amenities, including the enclave's private community pool, golf courses, spa services, dining, and trails. Don't miss the opportunity to make this stunning villa your own!

1702 E Cliff Rose Drive Payson, AZ 85541

$1,295,000
5 Beds
4 Baths
3,060 SqFt
Status Active
MLS # 6779325
Property Type Single Family Residence
Price Type --
Custom Modern Mountain Home less than 2 years old with Epic Views, Tall Pines, Privacy on 1 Acre in Chaparral Pines. Entertain in the Great Room with Vaulted Ceilings, Big Beams, Linear Gas FP w Stone and Metal. Feast in the Chefs Kitchen with Maple Cabinets, Quartz Counters, 48'' Gas Range, 2 Ovens and a Huge Built In Fridge. The Primary Bed has Views and a FP to keep you Cozy on Cool Nights. The Primary Bath has a Spa Vibe with 2'x4' tile, Quartz Counters, Big Tub + Shower w 2 Valves and Bench. The Back Deck is Private and Peaceful with Pines and Views. Downstairs has 2 King BRs, Family Room, Kitchenette and Full Bath. Load you Cars, Trucks, Golf Carts, Razors in the 3 Car Garage. Enjoy the Country Club Lifestyle at Chaparral Pines and The Rim Golf Club. Please Check it out Today !

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