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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36618 N Wildflower Road Carefree, AZ 85377

$1,025,000

4 Beds

4 Baths

4,274 SqFt

Status Active Under Contract

MLS # 6763051

Property Type Single Family Residence

Price Type --

Welcome to your dream home in Carefree, North Scottsdale! This exceptional property is not only listed WELL below its appraised value but also has the option on a 1+ acre vacant lot next door, making it a rare find in this desirable area. (Lot Separate Sale) Featuring breathtaking views of the surrounding mountains, this home offers a perfect blend of comfort, style, and the opportunity for outdoor living. Imagine sipping your morning coffee while taking in the serene landscape or creating your own private oasis. With spacious living areas, well-appointed bedrooms, and ample natural light throughout, this home is designed for both relaxation and entertainment. The fantastic layout provides the flexibility to customize your space according to your lifestyle. This home also features a spacious separate guest house, offering 647 sq ft of versatile living space. Whether you envision it as a cozy office, a private gym, or a creative studio, this additional dwelling is perfect for whatever you desire. Enjoy the flexibility and convenience it provides! Don't miss out on this incredible value. This property is a unique investment opportunity in one of Arizona's most sought-after locations. Schedule a showing today and experience the beauty and potential this home has to offer! **BUYER MUST Waive Spds and Insurance Loss history report in contract. These are not available. Sale must be ''As Is''. New Roof Installed 2022

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36830 N Long Rifle Road Carefree, AZ 85377

$1,025,000

3 Beds

2 Baths

2,503 SqFt

Status Active Under Contract

MLS # 6773970

Property Type Single Family Residence

Price Type --

Charming, Carefree Santa Fe Casa with modern upgrades! Step into a private morning courtyard that invites you into this warm and welcoming Home. The Great Room showcases a stunning herringbone latilla ceiling with vigas, complemented by a cozy fireplace with hearth and traditional banco seating. The bright Kitchen features stainless steel appliances and expansive quartz countertops, perfect for cooking and entertaining. The split floor plan offers a private Owner's Suite with an adjacent Office( or 4th,) while 2 Guest rooms are thoughtfully placed for added privacy. A sunny morning room leads to the shaded patio, perfect for enjoying breathtaking SUNSETS and MOUNTAIN VIEWS. Situated on a peaceful 1 acre lot, the backyard enjoys mature trees, cacti, a waterfall, citrus garden, and plenty of space to customize. Enjoy serene neighborhood walks by a nearby resort, golf course, and Carefree's downtown shops, activities, and dining. With no interior steps and no HOA, this is the perfect Home to relax, unwind, and take in the best sunsets and Black Mountain views the valley has to offer!

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27026 N Sycamore Creek Road Rio Verde, AZ 85263

Open House

$1,025,000

3 Beds

2.5 Baths

2,715 SqFt

Status Active

MLS # 6751583

Property Type Single Family Residence

Price Type --

Experience the best single-level living in this magnificent greatroom floorplan in the highly sought-after Tonto Verde 55+ golf community. Nestled on a huge premium corner lot, this beauty flaunts stone detailing, a 3-car garage, an extended paver driveway, a spacious front yard, & a gated courtyard great for welcoming guests. You'll love the immaculately designed interior enhanced with high ceilings, recessed & chic light fixtures, ceiling fans, a floor-to-ceiling stone fireplace, wood-plank tile flooring, & multi-sliders to the back patio. The heart of this house is the stunning eat-in kitchen, outfitted with quartz counters, a mosaic tile backsplash, SS appliances, plantation shutters, rich wood cabinetry, a walk-in pantry, an oversize island with a breakfast bar & Breakfast room. Primary bedroom with sitting area, plantation shutters, & french door to the covered patio. Primary bath with double sinks, walkin shower, free standing soaking tub, and huge walkin closet. Split Guest bedroom with a private patio & full bath, could be a second primary bedroom with a large walkin closet. Powder room off the great room for guests. A beautiful $1,650,000 house with pool is being built behind this home.

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4644 N 74th Place Scottsdale, AZ 85251

Open House

$1,025,000

3 Beds

2 Baths

1,628 SqFt

Status Active

MLS # 6769575

Property Type Single Family Residence

Price Type --

This MCM masterpiece, known as ''La Maison'' is a carefully curated design masterpiece. Every detail is masterfully planned and executed to maintain the 1958 charm all while blending modern design elements, comfort, style, and practicality. The living areas are bright, open and inviting and are highlighted by modern finishes and upscale touches. The gourmet kitchen is perfect for chefs of all skill-level, while the spa-inspired bathrooms offer a serene escape. Outside, a private, meticulously landscaped yard creates an ideal space for relaxation and soaking in the Arizona sun. Situated in one of Scottsdale's prime locations, La Maison is minutes from the area's best dining, shopping, and entertainment. Don't miss your opportunity to call this truly exceptional house ''home''.

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4103 E Mead Way Chandler, AZ 85249

Open House

$1,025,000

4 Beds

2.5 Baths

3,399 SqFt

Status Active

MLS # 6759559

Property Type Single Family Residence

Price Type --

Fall in love with this exceptional two-story gem located in the highly sought-after Avian Trails community! Excellent curb appeal with striking tone detailing, a manicured landscape, RV gate, and an extended driveway. The chef's kitchen features granite countertops, a mosaic tile backsplash, a spacious island with a breakfast bar, a newly added wine cooler, and all new appliances. Step into your private oasis, where a resort-style backyard awaits, featuring a newly built gazebo, a custom-built BBQ, and a stunning stone water feature - perfect for both relaxation and entertaining. Fresh paint inside and out, new front illumination, new irrigation system, upgraded bathrooms and new carpeting throughout add even more value! This one-of-a-kind, move-in ready home truly has it all!

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8320 E Quill Street Mesa, AZ 85207

$1,024,525

5 Beds

3 Baths

2,887 SqFt

Status Active

MLS # 6720762

Property Type Single Family Residence

Price Type --

Welcome home to this spectacular remodeled ranch home with cozy patios surrounding all sides. Tucked away in the hills of Northeast Mesa, This Desert Modern Ranch style home sits on almost a full acre of usable desert landscape. Very quiet, given a sense of privacy and seclusion. Get ready to fall in love with the cool desert sunrises over the mountaintops to the fiery sunsets glowing with city lights followed by the midnight skies dancing with a full open view of the stars. Remodeled in 2023, this 5 bedroom, 3 bath is a designer's dream. The split floor plan offers a separate guest house with its own kitchenette, separate patio and laundry room. As you step through the bold beautiful, custom entryway you are greeted with richly-appointed spaces. Step into the chef's kitchen with custom creamy cabinetry, a custom 36 inch induction range, stainless appliances, and an abundance of counterspace overlooking the great room. From the great room to the designer's master bathroom, every room is thoughtfully designed. The outdoors really makes this home special. Nestled in the foothills and mountains, you have wildlife and access to walking, hiking, and biking trails right outside your front door with the convenience of being only one mile from the freeway. You'll appreciate the short minutes drive to lots of shopping and restaurants, from coffee and juice bars to the stylish wine bar. Grab a bite at the sushi restaurant or catch a game at the sports bars. Are you ready to go enjoy the Arizona outdoor lifestyle, Take a 10-minute drive to one of Arizona's most scenic lakes or paddle down the salt river. Remember to play a round of golf at one of the country's top golf courses found in Las Sendas only 2 minutes away. If you were waiting for a one-of-a-kind, truly authentic Arizona home, this desert modern Escape is waiting.

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5627 N 199th Drive Litchfield Park, AZ 85340

$1,024,383

4 Beds

3.5 Baths

3,150 SqFt

Status Active

MLS # 6705920

Property Type Single Family Residence

Price Type --

Exquisite single story floorplan with 2x6 exterior walls is currently under construction in Litchfield Park! Garage plus casita with this single story home! 3 car tandem garage with an attached 50' RV garage, long enough for most class A RVs! Impressive great room with 12' ceiling, 12' multi-slide door at the great room will lead you to an large, extended covered patio. Walk-in pantry with gourmet kitchen with upgraded appliances and built-in gas cooktop. 3 bedrooms plus an attached casita with kitchenette, 3.5 bath, and a large study provides an great space for a home office. This home is beautifully appointed with upgraded cabinets, countertops, flooring and more. 2X6 CONSTRUCTION; EXTENSIVE NEW HOME WARRANTY

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3760 E San Mateo Way Chandler, AZ 85249

$1,024,000

4 Beds

3.5 Baths

2,914 SqFt

Status Active

MLS # 6765587

Property Type Single Family Residence

Price Type --

Just voted ''Best Home on Tour'' in Chandler luxury home tour. Incredible residence nestled in the desired Andorra Gated Community! Home was recently completely remodeled which included opening up kitchen to the family room. See docs tab for upgrade list. Spent over $200k making it a one of a kind home! Enjoy your morning coffee in the adorable courtyard w/welcoming iron gate. Wood floors, plantation shutters, neutral paint, large baseboards, & modern light fixtures all are features worth mentioning. Entertain your guests in the ample living room, formal dining, or even the semi-open den! Chef's kitchen has a oversized center island, SS appliances, cabinets w/crown moulding, quartz countertops, stylish backsplash, pantry, & breakfast bar peninsula for casual meals. The master suite is a a private retreat with its own backyard access, walk-in closet, and lavish bathroom that includes two vanities with lighted mirrors, glass enclosure shower, & soaking tub. Paradise-style backyard offers covered patio, plenty of trees and bushes, pavers, grass areas, built-in BBQ, & sparkling blue pool. Must see!!

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19691 E Estrella Road Queen Creek, AZ 85142

$1,020,995

3 Beds

3.5 Baths

3,190 SqFt

Status Active

MLS # 6731780

Property Type Single Family Residence

Price Type --

You will love this inviting Harley plan featuring 3 bedrooms, 2.5 bathrooms, a quiet study and an oversized game room. This multi-use home is great for entertaining. Fall into the 3 car garage as well as 40' RV garage. Lot is oversized with double gates on both side. All interior selections have been hand selected.

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6731 N 9th Drive Phoenix, AZ 85013

Open House

$1,020,832

4 Beds

3.5 Baths

2,625 SqFt

Status Active

MLS # 6759755

Property Type Single Family Residence

Price Type --

Welcome to Ocotillo Lane! Step into this contemporary two-story home featuring the Owner's Bedroom and Laundry Room on the first floor. Upstairs, you'll find a secondary en suite and two additional bedrooms, each with walk-in closets. Enjoy the gourmet kitchen with gas appliances, quartz countertops, upgraded stacked cabinetry for extra storage, and a stylish tiled backsplash. Luxury touches include tiled floors, plus tiled showers in all bathrooms. Energy efficiency is top-notch with spray foam insulation and a tankless gas water heater, achieving an impressive HERS score of 52. Visit this beautiful home today!

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19887 E Camacho Road Queen Creek, AZ 85142

$1,020,000

5 Beds

4.5 Baths

4,560 SqFt

Status Active Under Contract

MLS # 6779881

Property Type Single Family Residence

Price Type --

Discover this exceptional residence built in 2013 in the desirable Victoria Estates community in Queen Creek. The home offers 5 bedrooms, 4.5 baths and a separate guest suite within the luxurious 4560 sq.ft. space. This home sits on a substantial 0.42 acre lot. With key upgrades and a thoughtful layout, it seamlessly blends style and functionality. The home also has a 3 yr. old owned Tesla solar system with a triple battery back-up. Key attributes of the home in addition to the size and floor plan include well designed kitchen with upgraded appliances, cabinets, and counter tops designed for convenience and functionality. Adding to these are the 4 car extended length garage, RV gate, tankless water heater, home R/O system, and additional sink in the garage.

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15047 S 19th Way Phoenix, AZ 85048

$1,020,000

4 Beds

2.5 Baths

3,144 SqFt

Status Active

MLS # 6721117

Property Type Single Family Residence

Price Type --

VOTED 'BEST HOME' ON LUXURY HOME TOUR! Spectacular home in the highly sought after community of Cabrillo Canyon. A plethora of windows allow you to enjoy stunning mountain views & gorgeous sunsets from nearly every room. Soaring ceilings lend an air of spaciousness. The formal living and dining area provides a wonderful space for entertaining. The family room with its cozy fireplace & wet bar is perfect for relaxing. the kitchen is sure to please with its granite countertops, double wall ovens, island with flat cook top, plenty of cabinets & breakfast area. the spacious master suite boasts a large walk-in closet, double sinks, a walk-in shower & separate deep soaking tub & access to the back yard. Three more bedrooms, another bath and a den complete the picture. Step outside into your own back yard oasis with sparkling diving pool, spa, hot tub, gorgeous water feature & fire pits, built-in barbecue and best of all with only the mountain behind you can enjoy it all with maximum privacy. Located in a wonderful community with easy access to the 202 freeway, this property offers not just a home but a lifestyle.

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