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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1992 W Bartlett Court Chandler, AZ 85248

$949,000
3 Beds
2.5 Baths
2,795 SqFt
Status Active
MLS # 6774831
Property Type Single Family Residence
Price Type --
WOW - Remodeled & move-in ready single-level in The Retreat & Enclave at Ocotillo Lakes, gated community. Almost everything on this home has been upgraded! Check out the spa-like primary bathroom with new dual vanities, new spacious shower & luxury soaking tub, simply stunning. Entertainers' kitchen has been fully upgraded too with newer appliances, lighting, cabinet treatments, & wine-fridge. Custom-built bar in great room with beverage fridge/ice maker. New sliding glass doors in great room & primary bedroom! Step out back to your personal oasis with a large extended covered patio, built-in bbq, saltwater pool & spa! Pool surface, decking, & mechanicals updated. Three full bedrooms, office/den, plus formal dining room & living room. Inside CTA Independence school boundaries! Roof underlayment was replaced in 2022. Two new HVAC units in 2017. New water heater in 2019. Garage springs, motors, and rails new in 2024. Guest bathroom remodeled 2017/2018. Sliding glass doors new in 2022. Master bathroom remodeled 2024. Pool updated 2018, Decking 2021, Filter replaced 2023. Gutters installed 2022. No heater on pool/spa, but plumbed. See docs tab for full upgrade list, it's extensive!

340 W Gleneagles Drive Phoenix, AZ 85023

$949,000
4 Beds
2.5 Baths
2,565 SqFt
Status Active
MLS # 6780982
Property Type Single Family Residence
Price Type --
BEAUTIFULLY REMODELED! Experience elegant living in this stunning home in a great Phoenix location. Great curb appeal with a desert landscape, artificial turf, a 2-car garage, an RV gate, and an extended driveway. The refined style interior ''shouts'' attention to detail throughout! Abundant natural light, wood flooring, neutral paint, modern light fixtures, recessed lighting, and ceiling fans in every room. You'll LOVE the formal living room with a stacked-stone fireplace and the perfectly flowing dining & family room with a built-in table! The gourmet kitchen boasts high-end appliances, quartz counters & backsplash, a walk-in pantry, a coffee station, and white shaker cabinets. Sliding doors merge the inside & outside activities! The half bathroom also includes a stacked laundry closet. Enter the owner's suite to find a lavish bathroom with two vessel sinks, a soaking tub, a walk-in closet, and a glass-enclosed shower. If entertaining is on your mind, the backyard oasis will surely impress you! Designed for year-round enjoyment with a synthetic lawn, a travertine-covered patio, and a sparkling diving pool. Located in the desirable Moon Valley, a hidden gem that feels like a step back in time to a 1950s community, where neighbors know each other and a sense of camaraderie thrives. See it! Love it! Live it!

2640 N Eagle View Circle Show Low, AZ 85901

$949,000
3 Beds
3 Baths
2,316 SqFt
Status Active
MLS # 6736869
Property Type Single Family Residence
Price Type --
Luxurious and spacious 3-bedroom, 3-bathroom home that spans 2,316 square feet on a 0.3-acre lot, upgraded iron security fence with a rolling gate leading to a beautiful upscale paver driveway. The landscaping features tall, lush trees and ponderosa pines, complemented by a serene water feature. The beautiful wood deck and railing add a rustic charm that carries throughout the home, while the welcoming entryway with window bench seating invites guests into an open floor plan that boasts a floor-to-ceiling rock fireplace as its centerpiece. The flowing hardwood floors enhance the warmth of the space, and large windows with custom shades and valences allow natural light to flood in, creating an airy atmosphere. The breakfast table, adjacent to a sliding door, opens to a covered patio set in a beautifully landscaped yard with a rock-sided feature wall, perfect for outdoor dining or morning coffee. The open kitchen features a large, curved breakfast bar topped with granite, custom cabinetry adorned with crown molding, and ample drawer space. It features a glass cooktop with a built-in microwave, a wall oven, and a large French drawer refrigerator. The split granite sink and raised stainless dishwasher are designed for ease of use, along with a handy lowered prep sink. The large primary suite exudes luxury, with custom closet doors and wood trim, a dual vanity set in granite atop custom cabinetry, with one lowered sink for accessibility. The glass surround tile shower offers plenty of space, complemented by a large soaker tub for ultimate relaxation. The guest room is spacious and welcoming, just a few steps away is the guest bathroom with an oversized vanity in granite and custom cabinetry. The custom spa room features a large swim spa, glass surround shower, 1/2 bath, patio access, custom powered shades, offering a private retreat for relaxation and exercise. The large laundry room is equipped with ample counter space and raised access to the stainless washer and dryer, adding convenience to daily chores. This home is situated on an oversized lot within a gated community, ensuring privacy and security. The property is a blend of elegance, comfort, and modern amenities, making it an ideal residence for those seeking a luxurious lifestyle. The architectural design and thoughtful layout cater to both entertaining and private living, with attention to detail evident in every aspect of the home. Whether it's the tranquil outdoor spaces or the sophisticated interior, this home promises a living experience that is both grand and intimate.

206 W Crimson Sky Court Casa Grande, AZ 85122

$949,000
6 Beds
4 Baths
3,096 SqFt
Status Active
MLS # 6780650
Property Type Single Family Residence
Price Type --
A One of a Kind Oasis in the Desert! Located in desirable Coyote Ranch Neighborhood this 6 Bedroom 4 bath home on large .42 Acre lot W/Basement comes complete with Island Kitchen, Built in Fridge SS appliances Cabinets and Granite everywhere. Master Suite w/back yard access, HUGE walk in closet, tiled multi head shower and garden tub. Bedrooms 2 & 3 share a full bath and Ensuite 4th bedroom features it's own separate entrance. Living area w/fireplace overlooks spectacular back yard with pebble tec pool, water slide and waterfall. Two Gazebos, synthetic turf and an outdoor kitchen with a pizza oven! 3 car garage with epoxy flooring and lots of storage cabinets. Concrete RV parking area with custom remote control gates and pavered driveway. Don't miss out on this opportunit Fully finished 1000+ Sq. Ft. Basement with Mancave/Gaming area, 2 large bedrooms and full bath

4128 E Maya Way Cave Creek, AZ 85331

$949,000
4 Beds
2 Baths
2,105 SqFt
Status Active
MLS # 6780016
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the enchanting Tatum Ranch area! Renovated inside and out in 2017, this stunning 4bed/2ba home offers an exquisite interior featuring hardwood flooring throughout, except in the bedrooms. The open concept floor plan seamlessly connects the formal living space to the beautifully upgraded kitchen, providing delightful views of the resort-like backyard. Take in the breathtaking views of Black Mountain, with open space behind you creating a serene and private atmosphere.

7500 E Boulders Parkway Unit 64 Scottsdale, AZ 85266

$949,000 - 2Br/2Ba -  for Sale in The Boulders, Scottsdale
New
$949,000
2 Beds
2 Baths
1,902 SqFt
Status Active
MLS # 6782970
Property Type Single Family Residence
Price Type --
FRESHLY PAINTED & PRE-INSPECTED GEM ON THE 11TH FAIRWAY IN THE BOULDERS! MOVE RIGHT IN & enjoy the views! Lg great room w/two way FP.~high celings!Lg window package.Home is all one level! Kitchen island w/butcher block.All Stainless Steel Viking Appliances like brand new~ Gas cooktop~ Alder wood Cabinetry throughout the house. Primary with views; large bathroom w;sep tub shower;dual vaniity sinks. Nice guest bedroom & full guest bath. Wrap around covered patio makes for nice seating area. Home sits back away from fairway w/views! 2 CG w/Room for golf cart in garage.New roof; nothing to worry about for inspection ~ its clean as a whistle!

6323 E Nisbet Road Scottsdale, AZ 85254

$949,000
4 Beds
2 Baths
2,266 SqFt
Status Active
MLS # 6619120
Property Type Single Family Residence
Price Type --
This beautiful home is definitely move-in ready. Magic 85254 NO HOA; Best one story 4-bedroom 2 bath home. This was built by owners w/definite care and attention to details. Every upgrade was done with a good eye. The wall of new windows in living/dining room w/fireplace opens to a beautiful full patio w/private backyard and fruit trees galore. New windows AND flooring thru out. Recessed lighting too; Kitchen totally remodeled w/quartz countertops; stainless appliances; Master ensuite bathroom has jetted tub; 2 sep sinks; toilet room and huge walk-in closet. The second bedroom w/walk-in closet exits to backyard. Second bathroom has updated shower. Lots of storage; Plus Garage cabinets; Walking distance to many stores; close to upscale shopping; dining; events TPC Open; Kierland

7151 E Rancho Vista Drive Unit 4001 Scottsdale, AZ 85251

$949,000
2 Beds
2 Baths
1,586 SqFt
Status Active
MLS # 6700905
Property Type Apartment
Price Type --
Welcome to Optima Camelview! Known for its extra lush landscape and endless resident amenities, come see what all the hype is about and take a full property tour of this spectacular community. Unit 4001 is unique amongst the others for many reasons ... not only does it have one of the largest 2 bed/2 bath floor plans, but this particular unit comes with it's own private outdoor space, separate from the general patio. The opportunities are endless for what you could create there (see photos for virtual staged pics with ideas). #4001 also comes with 2 garage parking spaces, which is a rare luxury only some units have. Some of the amenities include indoor & outdoor pools and spas, gym, sport courts, putting green, locker room, on-property restaurant/bar & commercial business spaces.

5253 N 31st Place Phoenix, AZ 85016

$949,000
3 Beds
2 Baths
1,983 SqFt
Status Active
MLS # 6704884
Property Type Single Family Residence
Price Type --
This beautiful patio home nestled in the highly sought after Biltmore area Village on the Lakes gated community is a true treasure! The tranquil setting & desirable location embraces your luxury living space with lush greenery, beautiful walking paths, the Arizona Canal Trail, & open green belt areas. The c-plan home encompasses the open concept patio w/ mountain view balcony, sparkling pool, & therapeutic spa, with sliding glass doors on all 3 sides creating a unique ambiance, superlative privacy & plentiful natural light. 3 bedrooms & 2 baths plus an office space with powered & shuttered venting skylights. Upgraded kitchen with SS appliances & dining area plus a formal dining room & spacious living room w/ cozy fireplace. Well maintained with potential limited only by your inspiration!

13118 N Founders Park Boulevard Surprise, AZ 85379

$949,000
4 Beds
4 Baths
4,500 SqFt
Status Active
MLS # 6717741
Property Type Single Family Residence
Price Type --
Introducing a true Marley Park heritage gem: This exquisite Craftsman-style home, constructed in 2004 by custom home builder Newman Jolly was the first property built in this remarkable community and originally served as the Welcome Center. The fully custom design exemplifies thoughtful craftsmanship and elegant living. Brand new HVAC system installed 8-30-24. The expansive wrap-around porch provides ample space for entertaining, while inside, custom woodwork and soaring ceilings enhance the home's unique character. The large gathering room features a gas fireplace, and the spacious great room is ideal for formal dining or a game room. The living room, with three sets of French doors, opens to the side and rear patios. The gourmet kitchen boasts granite counters, custom cabinetry, gorgeous backsplash and an upcoming gourmet stainless steel appliance package, along with a walk-in pantry complete with a coffee bar. The first level also includes an office/den, laundry room, powder room, and utility room. An elegant staircase leads to the second level, where you'll find three large bedrooms, all with walk-in closets, and two full baths. The primary suite, located at the rear of the home, features a gas fireplace and a luxurious bathroom with split vanities, a soaking tub, a walk-in shower, and a massive closet. Entire interior home lighting is operated by 51 LED lights named Hubspace, that change colors, hues, brightness etc.. The large backyard offers lush green grass, and adjacent vacant lots are available for purchase. This home exemplifies refined living in the heart of Marley Park.

19016 E Alfalfa Drive Queen Creek, AZ 85142

$949,000
5 Beds
3.5 Baths
4,517 SqFt
Status Active
MLS # 6724911
Property Type Single Family Residence
Price Type --
PRICED TO SELL this stunning 5-bed home w/double door den/office, perfectly situated on a corner lot just across from the park. With nearly $200k in upgrades, it is a true gem! The extended chefs kitchen, designed with extra cabinets & ample counter space, includes a walk-in pantry, breakfast bar, butler's pantry, & formal dining. Main floor boasts a large master suite. The en-suite bathroom is a true retreat, featuring a spacious shower, separate bathtub, dual vanities, & his/hers closets, w/direct access to the laundry room. The open living room has soaring 27ft ceilings. Spiral staircase & doors have updated modern black paint. The home features a 3-car garage, courtyard, lovely patio, & beautiful turf in spacious backyard w/fire pit. Upstairs are 4 beds, 2 baths, & an expansive loft!

2024 W Andalusian Trail Phoenix, AZ 85085

$949,000
3 Beds
3.5 Baths
3,054 SqFt
Status Active
MLS # 6746695
Property Type Single Family Residence
Price Type --
Check out this stunning home located in the desired Union Park at Norterra. 3 bedrooms + office/den and 3.5 bathrooms. All bedrooms are en suites and the master offers a custom closet! This home boasts a wonderful layout with a 2nd living area plus an oversized laundry room that was just freshly painted. A brand-new shiplapped fireplace/ mantel was just installed with matching shiplap to the recessed ceiling nook to give it a clean and stylish look. You will love entertaining in this kitchen featuring a large island with seating, plenty of cabinet space, stainless steel appliances, and quartz countertops. The 3 car garage (1 tandem spot) has been insulated and plumbed for a sink and water softer. Home has been wired Cat5 throughout. Walk out to the backyard and you will notice brand new turf! Are you thinking of adding a pool or spa? Great news, it is already plumbed for it! Keep the backyard low maintenance or design your own backyard oasis. The community offers Olympic size swimming pool, splash pad, basketball and pickleball courts, event hall, onsite staff members and an amazing fire pit. You will have peace of mind with the neighborhood security that patrols the neighborhood day and night. Walking distance to restaurants, shopping, the elementary school! Welcome home!

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