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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3928 E Powell Court Gilbert, AZ 85298

$870,000
4 Beds
2 Baths
2,361 SqFt
Status Active
MLS # 6742225
Property Type Single Family Residence
Price Type --
Gorgeously upgraded 4 bedroom, 2 bath home with den/office option in highly desirable Seville Golf & Country Club Gilbert Community and on a 1/2 acre lot! Inside features an open floor plan with tile and carpet, updated paint, shutters in main living area, two beautifully remodeled bathrooms and a kitchen made for the chef at heart with a large island, quartz countertops, Blanco Silgranit sink, 42'' cabinets, brand new Samsung BESPOKE appliances with gas range & walk-in pantry. Outside has upgraded front yard lush landscape with turf and the backyard is a complete oasis with mature landscape, large grass area, newly remodeled pool(heated)/spa with water feature, fire pots, Bose speakers, extended paver patio, amazing outdoor kitchen, pergola with propane fireplace and automated RV gate.

3561 E Weather Vane Road Gilbert, AZ 85296

$870,000
4 Beds
3 Baths
3,297 SqFt
Status Active
MLS # 6756346
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the heart of Gilbert! This stunning former-model home exudes elegance and comfort at every turn. With four bedrooms, three bathrooms, and an impressive 3,297 square feet of living space, this property offers ample room for families of all sizes. As you approach the house, you'll be greeted by the charming tree-lined streets of the Morrison Ranch neighborhood. The curb appeal is undeniable, with a beautifully landscaped front yard, pavered driveway, and front porch. Step inside, and you'll immediately be impressed by the attention to detail and high-end finishes. Wood flooring, plantation shutters, crown molding, wainscoting, and built ins. The open floor plan creates a seamless flow between living spaces, perfect for both everyday life and entertaining guests. The heart of this home is undoubtedly the gourmet kitchen, which features granite countertops, stainless steel appliances, and upgraded 42-inch cabinets. The island provides additional prep space, while the pantry ensures ample storage. The eat-in kitchen area makes meals even more convenient. The two main living areas ensure plenty of space for everyone to gather and enjoy each other's company. The loft area upstairs offers additional flexibility, serving as a perfect playroom or teenage retreat spot, and has a covered balcony to enjoy. The primary bedroom offers a spacious layout and an ensuite bathroom. The dedicated office, school, or craft room has built-ins, a desk, and crown molding. Outside, the backyard is your private oasis. The sparkling pebble-tec pool with a rock waterfall is perfect for cooling off on hot summer days or hosting pool parties with friends and family. The covered tiled patio with surround sound, custom outdoor kitchen, and seating area add to the enjoyment. Situated in the desirable Morrison Ranch community, you'll enjoy easy access to a variety of amenities. Stroll to nearby stores and restaurants or explore one of the multiple parks, catch-and-release fishing lakes, basketball and sand volleyball courts, or the Riparian Preserve at Water Ranch, which offers a beautiful natural escape for exercising, birdwatching, or picnicking. This home is located within the top-rated Gilbert School District, which offers excellent educational opportunities from elementary through high school. Don't miss the opportunity to make this stunning property your new home, sweet home.

18650 N Thompson Peak Parkway Unit 1040 Scottsdale, AZ 85255

$870,000
3 Beds
2 Baths
1,773 SqFt
Status Active
MLS # 6756737
Property Type Townhouse
Price Type --
Elegantly Updated DC Ranch Townhouse! This single-level, corner unit boasts stunning views of the McDowell Mountains from both the front courtyard, master bedroom and the living room. Offering a seamless blend of comfort and convenience, this residence is ideally situated near restaurants, shopping, and more. Featuring three bedrooms and two full bathrooms, this stylish abode is perfect for both everyday living and lock-and-leave convenience. With wood floors throughout the main living areas and tile in the kitchen and bathrooms, the interior exudes a sense of timeless elegance. The living room is adorned with custom built-ins, including a gas fireplace, adding both sophistication and coziness to the space. Charming custom rounded doors throughout. Crafted by the renowned custom builder Camelot, this home is a testament to quality craftsmanship. Updates include, freshly painted throughout and refreshed cabinetry. Move in Ready!

3154 E Hope Street Mesa, AZ 85213

$870,000
4 Beds
2.5 Baths
2,655 SqFt
Status Active
MLS # 6756891
Property Type Single Family Residence
Price Type --
Explore this spacious 4-bedroom, 2.5-bath home in Mesa, offering 2,655 sq. ft. of practical elegance. Enjoy a private pool and manicured lawn for relaxation and entertainment. The kitchen features modern appliances, wooden cabinetry, and granite countertops, complemented by travertine floors. The layout is open with plenty of natural light, enhancing the wood floors throughout the living areas. The master bath provides a luxury experience with a custom shower and soaking tub. This property combines style with convenience, making it a must-see!

8714 E Jackrabbit Road Scottsdale, AZ 85250

$870,000
4 Beds
3 Baths
2,196 SqFt
Status Active
MLS # 6764221
Property Type Single Family Residence
Price Type --
Welcome home to stunning views of Camelback Mountain and your beautifully remodeled home featuring 4 bedrooms, 3 baths and two living spaces. The oversized master suite boasts a large walk-in closet an impressive spa-like bathroom. Two additional large bedrooms are on the same side of the home with the fourth bedroom split across the home with private den and full bathroom. 2 car garage, with direct access from the garage to the mud room. The home boasts new plumbing, a new sewer line, and updated electrical wiring for added peace of mind. The bright and open floor plan is enhanced by abundant natural light. The chef's kitchen is outfitted with a gas stove, new top of the line refrigerator, upgraded quartz counters, and a beautiful eat at quartz island. GREAT PRICE/GREAT HOME

7839 E Nestling Way Scottsdale, AZ 85255

$870,000
4 Beds
2 Baths
2,014 SqFt
Status Active
MLS # 6778338
Property Type Single Family Residence
Price Type --
Tastefully updated 4 bedroom/2 bath home in the always popular community of Grayhawk Village. The interior offers Travertine floors in the main living areas with warm and inviting wood plank floors in the bedrooms. Newer kitchen and baths renovation feature beautiful, custom granite counters with tile backsplash, stainless appliances and white cabinets finished with black matte hardware. North/South exposure and the large backyard is the perfect place to create your own personal Desert Oasis. Come and live the good life in Grayhawk and all it offers with easy access to dining, shopping and the opportunity for endless outdoor experiences such as Golf, walking and biking paths and parks. Easy access to the 101 and all the things that make Scottsdale a wonderful place to live.

22876 E Nightingale Road Queen Creek, AZ 85142

$869,990 - 6Br/5Ba -  for Sale in Sultana At Madera, Queen Creek
New
$869,990
6 Beds
4.5 Baths
4,791 SqFt
Status Active
MLS # 6784750
Property Type Single Family Residence
Price Type --
Ready this Winter Yellowwood plan! Larger homesites for your new home.~~ Sultana at Madera allows for quiet living with convenient access to the 24 Freeway and Shopping while providing amazing community amenities including a community pool, pickle ball, bocce ball, playgrounds, bbq's, and ramadas. This quick move in home features wood plank tile floors neutral in color.~ in the main living areas, plush carpeting in the bedrooms, White shaker style cabinets , large center island~,42'' upper cabinets , and SS appliances with gas cooking. quartz kitchen countertops & unique tile backsplash. The home showcases a 6 bedroom & 4.5 baths, 3 bay tandem garage with service door, double gate on sideyard,~8' interior doors, 9ft ceilings, pendant lighting over the island, ceiling fan prewires in all bedrooms and great room, designer tile in the primary bathroom ~~upgraded plumbing and lighting fixtures. Amazing spa like primary bath with CM separate shower and tub. Many designer finishes ,4 1/4 baseboards, pavers walkway & driveway, dual sinks in the primary bath & so much more selected by our designers. Enjoy outdoor living with a covered patio, where you can unwind and relax in your pool size backyard. Experience a peaceful lifestyle in a vibrant community Madera located in Queen Creek.

22861 E Alyssa Road Queen Creek, AZ 85142

$869,990
3 Beds
2.5 Baths
2,451 SqFt
Status Active
MLS # 6763682
Property Type Single Family Residence
Price Type --
Madera at Sultana , Aspen ~newest plan for Ashton Woods, Madera allows for quiet living with convenient access to the 24 Freeway and Shopping while providing amazing community ammenities. The Aspen Floor Plan gives you spacious living with an open concept that provides the much needed outside storage for your trailers, toys,shop area in the 4 car supersize garage with rear door. Tankless water heater, 4 panel SGD,double gate, den with doors,larger lot size in Madera. This home features a gourmet kitchen, deco wrapped island, GE built in appliances, 36'' gas cooktop, and beautiful shaker cabinetry and quartz counters in the kitchen. Neutral color palette throughout the home. The main living areas are styled with 8' interior doors, wood plank tile floors and upgraded carpet, oversized spacious bedrooms, and the primary bathroom features an enlarged tiled shower and separate free standing tub. The 4 car supersize with rear access door is a must see garage. Stop by to see the newest master plan community in Queen Creek and newest floor plan.

5841 E Sierra Morena Street Mesa, AZ 85215

$869,900 - 4Br/3Ba -  for Sale in The Reserve At Red Rock, Mesa
New
$869,900
4 Beds
3 Baths
2,462 SqFt
Status Active
MLS # 6784664
Property Type Single Family Residence
Price Type --
The Reserve at Red Rock, a gated resort style Community set in the Foothills of Northeast Mesa. The Reserve features approximately 48% open space, preserved desert, palm lined entries, a central clubhouse with resort pool, fireplaces, pickleball, gym, more. Excellent access to the natural desert and regional park space, shopping, and Freeway. The home is situated on a corner lot, backing up to 80' of vegetated open space. The very popular Residence 5 Floorplan features an oversized island kitchen, with ample cabinetry, feeding into both a spacious walk in and butler pantry. The split floorpan provides excellent privacy. Spacious Laundry Room, disappearing wall of glass opening up to the covered patio. Taxes estimated! Very near move in Ready.

18273 W Sapium Way Goodyear, AZ 85338

$869,900
4 Beds
3.5 Baths
2,799 SqFt
Status Active
MLS # 6768703
Property Type Single Family Residence
Price Type --
Gorgeous Estrella Mountain Ranch Home! 3079 sq ft with pool house and OWNED solar. This gorgeous property offers 4 beds, 3.5 baths, desert landscape, and a 3-car garage. Home exudes elegance, abundant natural light, plantation shutters, a neutral palette, and tasteful flooring, tile & carpet. You'll LOVE the modern open layout, thoughtfully designed for effortless gathering and relaxation! The gourmet kitchen boasts granite counters, mosaic tile backsplash, recessed & pendant lighting, built-in appliances w/cooktop gas, and a large waterfall island w/breakfast bar. The staggered wood cabinetry & a pantry ensure ample storage. Retreat to the owner's ste, featuring backyard access and a lavish bathroom with two vanities, a soaking tub, tiled shower, & a walk-in closet w/laundry room ac Two secondary bedrooms share a Jack & Jill bathroom with two vanities. PLUS! The 4th bedroom/ casita/ guest house has sliding doors to the back with kitchenette and bathoom. The versatile den is perfect for an office! Laundry room with a sink & cabinetry. But the highlight is the RESORT-STYLE backyard! Designed for year-round enjoyment with a covered patio, exterior fireplace, Gazebo, built-in bar & BBQ grill, putting green, fire pit, and a sparkling pool & spa combo. What's not to like? See it! Love it! Live it! Located in the resort community of Estrella Mountain Ranch with 2 residence clubs, pools, 2 gyms, hiking and biking trails and a Troon golf course, lakes and more!

532 W San Juan Avenue Phoenix, AZ 85013

$869,900
3 Beds
3.5 Baths
2,001 SqFt
Status Active
MLS # 6769134
Property Type Single Family Residence
Price Type --
BETWEEN the 7's! Remodeled charmer on a generous lot with guest house will knock your socks off! Located on a quiet dead-end street makes this a cozy location with easy access to main thoroughfares. The remodeled kitchen is open to family room and dining area gives this home a larger feel. Main house has 3 bedrooms and 2.5 baths, a laundry room, a split master, new plantations shutters throughout as well as wood inspired tile flooring. Converted garage is now a guest house with a kitchen and full bath. Backyard faces north and has a large pool,a sizable lawn (to be over-seeded), and generous patio for relaxing and entertaining. Welcome home!

21918 E Pickett Court Queen Creek, AZ 85142

$869,900
5 Beds
4 Baths
4,112 SqFt
Status Active
MLS # 6772308
Property Type Single Family Residence
Price Type --
Ashcreek an upscale home community in the heart of Queen Creek. An all single level neighborhood with large homesites. Close to schools and shopping. This wonderful home is in a cul-de-sac, has 5 bedrooms, 4 baths and a den with double french doors. Two tone paint thru-out. Cabinets w/sink & faucet in the laundry room. Spacious kitchen with stainless kitchen appliances, upgraded Cherry Spice cabinets, upgraded Granite top, Wet Butler pantry, formal dining Room. Is pre-wired for surround sound and security pre-wire. This home also, has 2x6 construction with cellulose in the exterior walls and is an Energy Star V3 home. A must see!

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