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.

Click Here to See What Your Home is Worth

7567 W Gelding Drive Peoria, AZ 85381

$994,864 - 4Br/3Ba -  for Sale in Bella Pasa, Peoria
Open House
$994,864
4 Beds
3 Baths
2,650 SqFt
Status Active
MLS # 6772888
Property Type Single Family Residence
Price Type --
Bella Pasa, a gated enclave of 30 semi-custom homes in the perfect location! Our newest plan, a 4-bedroom, 2.5 bath single-level home with the Ultimate RV Garage- 44 ft long with a 16 ft ceiling, a 12x14 door with room for all the toys! Large north-facing lot, covered patio, multi-slide 'wall of windows' for indoor/outdoor living. LG appliances, 10 ft ceilings and 8 ft tall doors; upgraded electrical package and many upgrades, still time to select and personalize the interior finishes. Mid 2025 completion. $20,000 towards financing or additional upgrades.

7337 W Lisbon Lane Peoria, AZ 85381

$994,700 - 4Br/3Ba -  for Sale in Acoma Estates, Peoria
Open House
$994,700
4 Beds
2.5 Baths
3,061 SqFt
Status Active
MLS # 6629568
Property Type Single Family Residence
Price Type --
New luxury home under construction at Acoma Estates, a gated enclave of 30 homes on oversized lots. This Ocotillo plan with a Classic Modern elevation offers 3061 Sq. Ft. 3-Car Garage plus a 44 ft long RV Garage. Great Room, Den and amazing gourmet kitchen. Located inside the Loop 101, convenient to Arrowhead, P83 District! * This home is currently in the early stages of construction and there's time to personalize the design. 25K builder incentive toward options/upgrades! * Photos are of Model *

9035 E Lupine Avenue Scottsdale, AZ 85260

$994,500
5 Beds
3 Baths
2,781 SqFt
Status Active
MLS # 6703094
Property Type Single Family Residence
Price Type --
This charming remodeled Contemporary home is located on a quiet cul-de-sac street and across the street from the entrance to a PRIVATELY GATED subdivision park. Gorgeous all new high-end surfaces and paint in 2023. This home features high ceilings throughout with a kitchen open to the family room for seamless living and entertaining. The main level has wood grained tile flooring. Also, featured are Modern, updated baths and a spacious primary suite. The back yard has a large play area to the side and sparkling pool which was just resurfaced. The garage features B/I cabinets and epoxy flooring. Located with easy access to the 101 as well as neighborhood shopping and dining. Honor Health hospital is minutes away. Nearby schools, restaurants, golfing. Great LOCATION!

4431 N 28th Street Phoenix, AZ 85016

$994,500 - 3Br/2Ba -  for Sale in St Thomas Park Lts 13-18, Phoenix
Open House
$994,500
3 Beds
2 Baths
2,048 SqFt
Status Active
MLS # 6759840
Property Type Single Family Residence
Price Type --
Seller to credit any buyer with up to $10,000 to assist with buyer closing costs or rate reduction. No HOA! Biltmore financial district! Top rated private schools! Phoenix international airport 10 min drive! Completely updated with modern finishes! Newer HVAC! Entertainers backyard! Oasis front yard! Five minute walk to shopping and dining! The first thing you notice as you drive onto the property is the beautiful lush trees/shrubs and arbor pergolas which offers tons of shade and privacy. There's plenty of parking offered for guests or even an RV with the extended concrete driveway. You'll also notice the beautiful Koi pond with rock waterfall feature as you approach the front door. As you step inside the home, you will notice the open space concept, and wall to wall wood-like ceramic tile. As you step into the kitchen, you will find all new modern matching appliances. Gray shaker cabinets, with clean, updated white quartz countertops. As you walked down the hall into the guest bathroom, you will see walk-in showers with updated finishes throughout. Then head to the primary bedroom with a 3/4 bath updated walk-in shower and dual sink. Spend some time in the backyard and experience the entertainer's vibe with private heated pool, built-in barbecue and beverage refrigerator as well as a travertine patio with tons of shade from mature trees. The owners also recently added artificial turf for low maintenance and a great look. Come take a look today before it's gone!

1 Easy Street Unit 4 Carefree, AZ 85377

$993,886
3 Beds
3.5 Baths
1,847 SqFt
Status Active
MLS # 6696833
Property Type Townhouse
Price Type --
WOW...TWO PRIMARY SUITES-ONE ON THE MAIN LEVEL AND ONE UPSTAIRS AND AN ADDITIONAL GUEST ENSUITE GUEST SUITE! UNOBSTRUCTED MOUNTAIN VIEWS, FABULOUS DOWNTOWN UPSCALE CAREFREE location offers the epitome of luxury and convenience, where every amenity is just steps from your doorstep in bespoke CAREFREE. This 3 bedroom, 3.5 bath townhome has HUGE LOFT, that could be an office, Movie Room, and more! From the moment you enter, you'lL BE CAPTIVATED BY UNOBSTRUCTED MOUNTAIN VIEWS, the CONTEMPORARY OPEN DESIGN, GOURMET KITCHEN BOSCH STAINLESS STEEL APPLIANCES, OPULENT PRIMARY SUITE.. The amazing WALKABILTY of this community only enhance the tranquil, luxurious atmosphere. Community features HEATED Pool, Spa, Putting Green, Bocce, AND Ball Court. Within steps of your door, Fine Restuarants, World Class Art Galleries, Live Music Venues showcasing talented Artists, and Boutiques featuring high end fashion. You'll also find conveniences like living within a upscale village, with a Grocery Store, Post Office, Banks, Hardware Store, Gas Station, Spa's, Wine Bar, and much more, all within moments from your doorstep. Relax and unwind on the large covered patios or indulge in the views from your private viewing deck. With its ideal location just blocks away from Carefree's sister city Cave Creek and a short seven minute drive to North Scottsdale, you'll have endless opportunities for entertainment and exploration. It's no wonder that Carefree is considered one of Arizona's premier places to live. Experience it firsthand at The View Carefree as you live the life of your dreams right here in this extraordinary community! Come see for yourself how sweet life can be at The View Carefree! Please note: Price Sheet and Floor Plans for All Available Units can be found under the Documents Tab.

15608 E Cholla Drive Fountain Hills, AZ 85268

$991,900
4 Beds
3.5 Baths
2,794 SqFt
Status Active
MLS # 6762576
Property Type Single Family Residence
Price Type --
A truly one of a kind custom built home on view lot. This unique, warm & welcoming floor plan has great flow & exudes pride of ownership. From the stunning Iron front door, enter into this inviting space w/the formal living & dining rooms /3 way fireplace/custom flagstone & Brazilian wood floors...you can just feel the richness! Split floorplan w/the comfortable Master suite completely separate allowing for total privacy. Master bath has a custom snail shower w/bench, dual vessel sinks & alder cabinets. The Chef's kitchen w/top of the line granite & alder cabinets w/pull outs, appliance garage/built in hutch & more overlooks the spacious family room w/double sliding doors to the lush retreat like back yard w/covered patio & Ftn views The sparkling pool/spa/& waterfall...MORE. ...are a welcome site after a long day! A HUGE bonus is the attached guest casita. This special space will welcome family & guests alike, with gorgeous knotty alder cabinets, a murphy wall bed, lots of storage, beautiful bath with custom walk in shower/vessel sink & more! This artistic home is filled with nooks, arches & pot shelves. There is plenty of room for your special art. the 4th bedroom was the 3rd bay of the garage and can be transformed back if desired. There are so many wonderful features of this home, it's hard to list them all here...take a look at the documents section for a full list.

3001 W Sun Beam Lane Queen Creek, AZ 85142

$990,950
5 Beds
4 Baths
3,552 SqFt
Status Active
MLS # 6770567
Property Type Single Family Residence
Price Type --
Welcome to this newly built home on a sprawling 1.5-acre lot! This stunning residence boasts a 3-car garage, a welcoming porch, and breathtaking mountain views. Entertain guests in the living room with high ceilings, recessed lighting, a soothing palette, and wood-look flooring. Continue to the spacious great room, which includes an inviting fireplace for cozy evenings with loved ones. The delightful kitchen comes with quartz counters, crisp white shaker cabinetry with crown moulding, pendant lighting, a tile backsplash, stainless steel appliances, a walk-in pantry, and a large island with a breakfast bar for casual meals. You'll also find a cozy loft that adds a versatile space for an office or playroom. The serene primary bedroom offers soft carpeting, an ensuite with double vanities, a soaking tub, and an oversized walk-in closet. Enjoy panoramic views in the vast backyard, complete with a covered patio for al fresco dining. This gem will sell fast!

2702 Majestic Elk -- Overgaard, AZ 85933

$990,000
3 Beds
2.5 Baths
1,800 SqFt
Status Active
MLS # 6696250
Property Type Single Family Residence
Price Type --
5.20-Acres Treed lot backs to the National Forest. With Oversized 750 sf 2-Garage and Detached Guest Casita with 1/2 bath. Covered Entry with wrap around trex decking & Covered patio with Metal Railing, Island Kitchen with Granite Countertops & Island with tile backsplash, stainless appliances, New Microwave, Large Primary suite with large shower and w/i closet with built in Dresser & built in Sauna, Vaulted Ceilings with Tongue & Groove Ceilings, Ceiling fans, Wood Stove in Great Rm with built in speakers & TV, Wood flooring thru-out & Tile in Baths, Built in Murphy bed in 2nd bedroom, *3rd bedroom as Guest Castia, Recessed Lights Media Closet, Energy efficent wood casement dual pane windows, 16-foot sokder door backs to Cov.Patio with yard and pavers & Fireplace & SPA to convey, Welcome to your serene sanctuary nestled next to the majestic Sitgreaves National Forest! Imagine waking up to the symphony of birdsong, Elk bugling and the gentle whisper of the large pines, all from the comfort of your own home. Situated on a sprawling 5-acre parcel, this property offers unparalleled tranquility and a deep connection with nature. Explore miles of trails right from your doorstep, immersing yourself in the beauty of the wilderness. Encounter wildlife in its natural habitat as deer, elk and wild horses graze right outside your windows. Whether you're an avid hiker, a nature enthusiast, a hunter or simply seeking solace away from the hustle and bustle, this is the place for you. Step inside your retreat, where luxury meets comfort. Relax and unwind in your very own built-in dry sauna or soak away your cares in the inviting hot tub, surrounded by the sights and sounds of the forest. For the avid golfer, indulge in your passion with the convenience of air conditioned space off the garage featuring a state-of-the-art golf simulator with half bath, or easily convert it into an additional bedroom for guests or family members. The heart of the home beckons with a spacious great room with large windows facing the forest, offering versatility to add an extra bedroom or create the perfect entertainment space. Designed for year-round comfort, both the house and garage boast foam insulation, ensuring energy efficiency and coziness in every season. Say goodbye to maintenance headaches with an exterior that's virtually maintenance-free, featuring engineered siding, durable metal railings, and Trex decking that stand the test of time. Outside, luxuriate in the lushness of your irrigated lawn and large paver patio with fire pit, perfect for outdoor gatherings or simply basking in the natural beauty that surrounds you. Don't miss this rare opportunity to own a slice of paradise, where every day feels like a retreat and the wonders of nature are your constant companion. Welcome home to your own private oasis.

36257 N Copper Hollow Way Queen Creek, AZ 85140

$990,000
2 Beds
2 Baths
1,538 SqFt
Status Active
MLS # 6765707
Property Type Townhouse
Price Type --
Stunning home on the golf course of Encanterra. This former model home is ideally situated on the Encanterra golf course with captivating water and mountain views. This home offers an exquisite gourmet kitchen and a unique feature—a rolling wall of glass that seamlessly merges indoor and outdoor living spaces. With 2 bedrooms, 2 bathrooms, and a versatile den/office area, this property is truly exceptional. Over $200,000 in builder upgrades make this home so special. Walking distance to both clubhouses and centrally located in the heart of the community. Start living the good life at Encanterra today!

5632 N 134th Drive Litchfield Park, AZ 85340

$990,000
5 Beds
3.5 Baths
4,576 SqFt
Status Active
MLS # 6779241
Property Type Single Family Residence
Price Type --
This absolutely gorgeous former model home, loaded with $285k in upgrades, is turn-key ready! The main living area features beautiful new porcelain floors, fresh interior paint, & a new roof ('22). Inside, you'll find a den perfect for a home office & a rare finished basement offering extra space. The stunning kitchen includes pendant & recessed lighting, ample cabinetry with crown molding, stainless steel appliances, an island with a breakfast bar, quartzite countertops, & a pantry. The spacious primary suite offers a private exit, a cozy sitting room w/ a fireplace, & a luxurious bath with dual sinks, a separate tub, step-in shower, & walk-in closet. The backyard is an entertainer's dream w/ a remodeled pool & spa ('23) & a covered patio w/ misters. Additional features include... energy-efficient solar, a water softener, indoor/outdoor surround sound, and a newer HVACthis home has it all!

40018 N 7th Street Phoenix, AZ 85086

$990,000
4 Beds
4 Baths
2,617 SqFt
Status Active
MLS # 6781412
Property Type Single Family Residence
Price Type --
Step into luxury with this Stunning, Custom-Built Home where No Expense was Spared. This Dream Home with 4Bedrooms 4Baths, Den, an Oversized 4 Car Garage, Boasts Expansive Acreage, Open Spaces, Spectacular Sunset & Mountain Views, Sparkling New Built Pool, Above Ground Spa, Tankless Water Heater, Sky Light, Cabinets & Utility Sink in Laundry Room, Two RV Gates. Thoughtfully Designed Kitchen Features High-End Appliances, Honed Granite Countertops, Extra Large Island with a Beautiful Marble Counter. Smooth Touch Smart Light Switches, High-Quality Finishes. Master Bath is a True Retreat with a Frameless Glass Shower, Honed Granite Countertops, Freestanding Tub 4 Ultimate Relaxation. Two of the Bedrooms offer Private En-Suite Baths. Horses are welcome, adding to the country living experience.

11280 S Wilson Lane Goodyear, AZ 85338

$990,000
5 Beds
4.5 Baths
3,763 SqFt
Status Active Under Contract
MLS # 6756359
Property Type Single Family Residence
Price Type --
Custom 5 bed, 4.5 bath home in Estrella! This amazing home offers a 3 car garage with custom wood doors, RV gate, gated entry to courtyard, & custom-built iron door. The fabulous interior boasts open floor plan w/family and dining areas, fireplace, wet bar, den great for an office, & loft with home theater & balcony exit perfect for an entertainment area. The gourmet kitchen is comprised of stainless steel appliances, staggered alder cabinets w/crown molding, tile backsplash, granite counters, & large island with breakfast bar. The master bedroom has private exit, plantation shutters, lavish bath, his & her sinks w/travertine, jetted tub, step-in steam shower, & walk-in closet. The stunning backyard features an extended covered patio and a refreshing pool & amazing views!!

Leave a Reply

Your email address will not be published.