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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10150 E Havasupai Drive Unit 1119 Scottsdale, AZ 85255

$3,800,000
4 Beds
4.5 Baths
4,756 SqFt
Status Active
MLS # 6738205
Property Type Townhouse
Price Type --
Contemporary home in The Parks at Silverleaf. This meticulously designed residence features two large Principal Suites, one on each floor, and another guest en suite on the main level - this home offers so much flexibility! The kitchen, equipped with all new Wolf Sub-Zero appliances, a walk-in pantry, and a spacious island with seating, opens to the great room with a fireplace and dining area. The large office/den offers excellent valley views. The upper level boasts a sizable entertainment area with a wet bar and with its' full bathroom it could also serve as another en suite bedroom! The backyard includes a pool, turf, and a covered patio with a dining area. The home is Crestron controlled with Sonos sound throughout. An exceptional opportunity in a prestigious neighborhood.

7147 N 23rd Place Phoenix, AZ 85020

$3,799,000
4 Beds
4 Baths
4,539 SqFt
Status Active
MLS # 6736159
Property Type Single Family Residence
Price Type --
Discover unparalleled luxury living in this meticulously renovated, exquisite hillside retreat boasting breathtaking views of the downtown Phoenix skyline. This two-story, 4-bedroom residence with a den and 4 bathrooms with European White Oak wood floors throughout, offers a blend of modern elegance and serene comfort. The Grand entrance of the foyer seamlessly flows to the main living areas, where a spacious Great Room awaits, complete with a cozy gas fireplace and electronic shades for effortless ambiance control. Entertain in style with a wine room and a sophisticated wet bar featuring an ice maker. The sleek gourmet kitchen features wood and tile floors, a breakfast nook, and indoor outdoor dining features, perfect for enjoying Arizona's sunny days. The floating stairs... embodies an art-like essence ascending to the primary bedroom suite, offering a private sanctuary with its own gas fireplace, walk-in closets, and a luxurious bathroom retreat. Additional highlights include a formal dining area, a laundry room with a sink for added convenience, and a 3-car garage for ample storage. This meticulously designed residence combines modern amenities with panoramic views, promising an unparalleled lifestyle amidst the beauty of the Arizona landscape.

8222 E Old Paint Trail Scottsdale, AZ 85266

$3,799,000 - 5Br/6Ba -  for Sale in Reserve At Black Mountain, Scottsdale
Open House
$3,799,000
5 Beds
5.5 Baths
5,638 SqFt
Status Active
MLS # 6770322
Property Type Single Family Residence
Price Type --
This stunning Vacaro design was made for entertaining! This home showcases an open floor plan with elevated ceiling heights and tons of windows in the main living spaces. The Gourmet kitchen is a chef's delight with upgraded cabinets, dual islands, designer stainless steel appliances including a Wolf 48'' Rangetop w/Griddle, Pro Hood, Micro Drawer, Pro Double Ovens, and Cove Dish Washer. Spacious great room features a 60'' primo fireplace and 20' multi-stacking door opening to a covered patio and amazing backyard with views. An oversized family room with direct access to a covered patio and pool area, in addition to the private serene front courtyard. Wake unto amazing views in the spacious Primary Suite. Relax in your spa-like primary bath with separate soaking tub and step-in... shower. The additional 3 main home spacious bedrooms ALL have their own baths, perfect for family/guest privacy. Large attached casita with living area that has a sink and drink chiller, full bath and courtyard with fire pit. The sparkling pool in your private backyard oasis is AMAZING! Baja shelf, smaller pool and spa will WOW you! The grill master will love the covered built-in grill area. End your day in front of the gas fire-pit while watching stunning Arizona sunsets. SO much more to mention! You MUST SEE this home!

9440 N 57th Street Paradise Valley, AZ 85253

$3,795,000
5 Beds
5 Baths
3,800 SqFt
Status Active
MLS # 6738222
Property Type Single Family Residence
Price Type --
Completely renovated to the highest standards! Finished home is similar to new construction. This is one of the best golf lots in the town of Paradise Valley Great Views but quiet and private. Single level home, with a split floor plan. Huge ceiling height throughout. Open floor plan through the Large kitchen, eating area and living room. 16 Foot pocketing door opens to pool,& patio. Wolf/Subzero appliances. 72'' horizontal gas fireplace. Lutron electric roller blinds and lighting. Four full bedrooms and family room with ensuite bathrooms. Oversized air conditioned / heated 3 car garage, 2 of which can be set up as an entertainment center. Electric car chargers in both garages, Smart controls, Security cameras. Golf and mountain views are absolutely stunning. Very easy to show.

8808 E Sulky Circle Scottsdale, AZ 85255

$3,795,000
6 Beds
4.5 Baths
4,742 SqFt
Status Active
MLS # 6724345
Property Type Single Family Residence
Price Type --
Built in 2021 on 1.73 acres, this contemporary retreat is tucked in the tranquil, gated enclave of Pinnacle Peak Place. Spanning 4,742 SF, including a 550 SF guest house, the home was meticulously designed with contemporary finishes throughout. The gourmet kitchen is both stunning and functional, boasting high-end appliances, two dishwashers, and a hidden walk-in pantry. The open-concept great room features soaring ceilings, wood beams, and a spectacular wall-to-wall slider that seamlessly blends indoor/outdoor living. Enjoy breathtaking views of Pinnacle Peak from the resort-style backyard, which is beautifully landscaped w/ newly-added mature trees, a lighted, heated pool, integrated spa, deck jets, extensive covered patio w/ tongue-and-groove ceilings, built-in BBQ, fire pit, & turf. Located within 10 minutes of premier golf courses, hiking/biking trails, and upscale shopping and dining, this modern desert sanctuary offers luxury, comfort, and convenience.

15864 N 115th Way Scottsdale, AZ 85255

$3,795,000
3 Beds
3.5 Baths
4,285 SqFt
Status Active
MLS # 6746160
Property Type Single Family Residence
Price Type --
Elevated Extravagance! Ricci Renovations unveils another jewel within The Retreat at One Hundred Hills, a guard-gated community in McDowell Mountain Ranch. Views from every room, the transformation was just completed, ready for enjoyment & memories to be made. A freshly painted exterior w/ travertine entry leading up to the 12' arched wood front door provides a terrific initial impression. Upon entering, you immediately notice the new 10' sliders framing the new pool & majestic mountain views. The brand-new European oak wood floors are gorgeous & run throughout the main areas while hand-selected tile differs in each bath. The spectacular kitchen offers an all-new Thermador appliance package, Perlato Taj Satin quartzite counters waterfalling on 3 sides that sit atop rift oak & macaron green counters. The locally custom-made Supra Mat & textured laminate cabinetry bring warmth & luxury to this fabulous estate. The primary suite showcases a 14-light centerpiece pendant & a gas fireplace wrapped in matte charcoal tile with aspen logs. The primary bath is an oasis with floating cabinetry, Calacatta Maywood quartz counters, soaking tub, redesigned/oversized shower with his and her heads, all adorned with brilliance black onyx Brizo finishes. The closet is spacious, also with custom cabinets, plus there's a dedicated exercise room. The built on-site gas fireplace, 72'' linear open face with herringbone brick & glass bed, in the family room is a showstopper. It overlooks the city below providing the perfect gathering spot. Other features include a shiplap ceiling in the dining, a Chevron wall in the office, deco tile accent wall in powder & carbon reflective glass tile with light-embedded floating shelves on the bar. Both guest rooms have walk-in closets, ensuite baths with floating cabinetry, Ripieno satin quartz counters & faucets/showers with Brizo selections. The backyard is ideal, covered in silver storm travertine that surrounds an all-new sparking pool, spa, deco-tiled water feature wall, firepit, BBQ station & large turf area. The backdrop of city lights & the McDowell Mountains are incredible, day or night. The 4-car garage has all-new epoxy flooring & lighting. A new roof underlayment in 2023 has a transferrable lifetime warranty. HVAC units were replaced in 2012, serviced in 2024 & are in great working condition. 2 new water heaters & a water softener. The community has a heated pool & spa alongside 2 tennis courts. There are also 2 more community centers within MMR that offer pickleball, tennis, basketball, playgrounds, pools, hiking & biking trails as well as an aquatic center. North Scottsdale living at its finest.

8150 N 47th Street Paradise Valley, AZ 85253

$3,795,000
3 Beds
2.5 Baths
4,952 SqFt
Status Active
MLS # 6721098
Property Type Single Family Residence
Price Type --
Nestled amidst the hillside within highly desired Tatum Canyon in Paradise Valley, this exquisite retreat boasts expansive views of Camelback Mountain, Mummy Mountain, the McDowells, Phoenix Mountain Preserve and city lights. Enjoy breathtaking sunsets and spectacular views from every single room! Upon entering, you are greeted by a grand foyer that leads into spacious and beautifully appointed living areas, media room, den, dining room, and contemporary gourmet kitchen featuring custom cabinetry with quartz countertops and massive waterfall island; each room capturing their own unique views. The upstairs primary suite is a sanctuary of tranquility, featuring a fireplace, private balcony, ensuite bath with a soaking tub, and exercise/yoga studio with expansive views that invite relaxation Two additional bedrooms feature an ensuite bath and offer versatility for guests or a home office. On the lower level you will find an extended garage with built In cabinetry and an attached hobby room with additional storage space. Outside offers the perfect setting for relaxing poolside, dining, entertaining guests, or simply soaking in the serenity of the surrounding landscape. A true entertainer's dream, with the perfect combination of indoor-outdoor living. Located in one of Paradise Valley's most coveted neighborhoods, this home combines the privacy and tranquility of hillside living with convenient access to upscale shopping, dining, hiking, and golf. Whether you seek a peaceful refuge or a place to entertain in style, this exceptional residence offers a rare opportunity to experience the ultimate in AZ living.

12347 E Gold Dust Avenue Scottsdale, AZ 85259

$3,795,000 - 5Br/6Ba -  for Sale in Emerald Hills, Scottsdale
Open House
$3,795,000
5 Beds
5.5 Baths
5,196 SqFt
Status Active
MLS # 6689294
Property Type Single Family Residence
Price Type --
**DAYS ON MARKET INCLUDE CONTRUCTION TIME* Welcome to Emerald Hills - your new seven home subdivision in north Scottsdale. Once again, Cachet Homes has hit a homerun with this luxury contemporary home and has all the amenities you could possibly want. With an attached guest house and detached pool house, oversized 4-car garage, north-south lot, with a south facing backyard boasting an amazing pool & spa - this one has it all! Cachet Homes finishes their homes with beautiful style and modern elegance and carry their commitment to handing you a truly turn-key home by having the landscaping and backyard finished and ready to use. Home next door is also for sale go to MLS#6646447 to see what is available now.

12220 E Alameda Road Scottsdale, AZ 85255

$3,794,995
3 Beds
3.5 Baths
4,365 SqFt
Status Active
MLS # 6749244
Property Type Single Family Residence
Price Type --
THIS OPPORTUNITY WON'T LAST, BUT THE VIEWS WILL! Move in Ready home on over 4 Acres. This beautiful pre-designed home with luxurious upgrades throughout. The award-winning Mayne home design was made for entertaining. This single level home showcases an open floor plan with elevated ceiling heights in the main living spaces. The gourmet kitchen is a chef's delight with upgraded cabinets and designer stainless steel appliances including a Wolf 48'' G Pro Range, 48'' Custom Decorative Kitchen Hood, JennAir Ice Maker, Sub-Zero 24'' Beverage Center, Sub-Zero 24' Wine Column, and a 30'' Column refrigerator and 30'' Column Freezer. Spacious great room features a 60'' Mezo fireplace and a 20' multi-stacking pocket door. Oversized bonus room with access to covered patio. Casita with living and bat

19627 N 101st Street Scottsdale, AZ 85255

$3,775,000
5 Beds
5.5 Baths
4,533 SqFt
Status Active
MLS # 6683085
Property Type Single Family Residence
Price Type --
This Canyon Villa, nestled within the prestigious guard-gated enclave of Silverleaf and masterfully crafted by the renowned Bing Hu, characterizes luxury living. Boasting 5 bedrooms and 5.5 bathrooms, 4,533 square feet, this residence offers a blend of sophistication and comfort. The expansive great room is accentuated by charming wood beam ceilings, creating an inviting ambiance that seamlessly flows onto the covered patio. Whether hosting indoor gatherings with friends or enjoying serene evenings outdoors while the sunset casts a golden glow over the McDowell mountains, this space offers spectacular views, making it the perfect setting for every occasion. Thoughtfully updated, this home features a Chef's kitchen, Bifold doors, new wood flooring throughout adds warmth and elegance to every corner of this abode. Convenience and privacy define the main level, which hosts a luxurious primary bedroom suite, office with views, open great room with vaulted ceilings providing a sanctuary of comfort and relaxation. Stepping into the front lushly landscaped courtyard, guests are greeted by a detached guest casita, complete with a heated pool and spa. Whether lounging poolside or enjoying a rejuvenating soak, visitors are treated to an unforgettable retreat experience. Silverleaf, located in North Scottsdale, Arizona, is a prestigious guard gated community known for its luxurious estates, exclusive golf courses, private Club and stunning desert landscapes. The Tom Weiskopf-designed Silverleaf Golf Course is a highlight for golf enthusiasts. With a blend of Spanish and Mediterranean-inspired architecture, the community offers a high standard of living, including upscale amenities like spas, fine dining, and exclusive shopping. Residents enjoy a harmonious balance between modern luxury and the natural beauty of the desert environment, making Silverleaf a sought-after destination for those seeking an exceptional lifestyle in North Scottsdale.

5625 E Indian Bend Road Paradise Valley, AZ 85253

$3,765,000 - 4Br/3Ba -  for Sale in Club Estates 2, Paradise Valley
New
$3,765,000
4 Beds
3 Baths
3,887 SqFt
Status Active
MLS # 6777361
Property Type Single Family Residence
Price Type --
Welcome to Arizona's oceanfront property, featuring breathtaking, head-to-tail unobstructed views of Camelback Mountain. Nestled on Mummy Mountain and adjacent to a private reserve, this exquisite single-level residence offers the perfect blend of luxury and tranquility. With four spacious bedrooms and three beautifully appointed baths, this home provides ample space for family and guests. The primary suite includes a cozy sitting room with a gas fireplace, while the inviting family room features a second gas fireplace, perfect for gatherings. Elegant formal living and dining areas create an ideal setting for entertaining, complemented by a gourmet eat-in kitchen equipped with a Gaggenau induction cooktop and Sub-Zero refrigerator. Elegant tile and wood flooring enhance the home's... sophisticated ambiance. Accessing this mountain retreat is easy, thanks to the convenient driveway that ensures effortless entry. Step outside to your private pool surrounded by lush landscaping, with a spacious terrace perfect for enjoying the stunning mountain and city views. This extraordinary property embodies the essence of Arizona living, offering comfort, elegance, and natural beauty. Dont miss your chance to own this exceptional Paradise Valley gem.

12265 E Troon Vista Drive Scottsdale, AZ 85255

$3,751,995
5 Beds
5.5 Baths
4,682 SqFt
Status Active
MLS # 6668733
Property Type Single Family Residence
Price Type --
Don't miss this opportunity to live in Scottsdale's most desirable location, the picturesque, and award winning community of Sereno Canyon. Nestled against the McDowell Mountain preserve, with Sonoran desert views and close proximity to hiking trails. This open floorplan includes a casita with an exterior and interior entry, wet bar, and has enough room for bedroom and living space. The kitchen great room opens to a large covered patio with a 20' 90 degree corner door that pockets into the wall and brings the outside in. Chefs kitchen including two quartz islands for entertaining, SS Wolf Pro Line including a 48'' smart range, wall oven, and Sub-Zero 48'' side by side built refrigerator. 14' ceilings in the main living area. All bedrooms are en-suite with WIC. 10 year warranty included.

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