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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149 N Charlotte Street Queen Valley, AZ 85118

$574,990
3 Beds
2.5 Baths
2,600 SqFt
Status Active Under Contract
MLS # 6742416
Property Type Single Family Residence
Price Type --
Wow, PRICED UNDER APPRAISAL VALUE! ~Owners need to move! ~SPECTACULAR CUSTOM HOME offers STUNNING 360 SUPERSTITION MOUNTAIN VIEWS from your balcony & front porch! ESCAPE HARSH WINTERS in your One-Of-A-Kind PICTURESQUE VACATION HOME or FOREVER HOME! Nostalgic MAYBERRY-ESQUE Town, a rural sanctuary quiet reprieve! ~THE GOOD LIFE U DESERVE AWAITS! ~GOLF ~2 Restaurant/Cantinas ~TOWN SQUARE SOCIAL EVENTS! ~LAKESIDE Picnics ~WARM GLOW of HARDWOOD SOARING CATHEDRAL CEILINGS w/STAINED GLASS accents create UNIQUE AMBIANCE of a SKI CHALET in the DESERT! ~$220k in REMODEL/UPGRADES ~2 sep OWNER'S ENSUITE BEDROOMS ~Replumbed Home ~REBUILT BATHROOMS ~NEW FLOORS ~NEW APPLIANCES ~INTERIOR PAINT is Eco-friendly, all-natural, Real Milk Paint w/no off-gassing *GOLF+POOL/SPA MEMBERSHIPS avail at nominal fee. ...Owners cleaned all ducts with a special custom cleaning company, Arcadia Cleaners. The whole house, including the air quality, is set up perfectly for anyone with environmental allergies or for children who need a clean environment for their growing development. ***Optional***JOIN VOLUNTARY Homeowners Recreation Center Assn at ONLY $20 annually to participate in RECREATION CENTER SOCIAL EVENTS! This voluntary participation ONLY affords social events & DOES NOT extend any control by any HOA over your property; it's purely for entertainment purposes.

2425 N 142nd Avenue Goodyear, AZ 85395

$574,940
4 Beds
3 Baths
3,065 SqFt
Status Active
MLS # 6768236
Property Type Single Family Residence
Price Type --
Prime golf course lot! Located in a desirable Palm Valley gated community this home has everything you're looking for! 4 bedrooms, loft, 3 bathrooms, multiple patios & more than 3,000 sq ft of livable space. 2 brand new a/c units, newer appliances & water heater. Throughout you will notice the plank tile in the main living areas, 10' tall ceilings , 8' tall doors & large windows providing an abundance of natural light. Large kitchen with lots of counter space, 42'' upper cabinets, under cabinet lighting, pantry, travertine backslash & granite countertops. Primary suite is located downstairs & has great golf course views, double sinks, separate shower/tub & walk-in closet. Upstairs there are 2 large bedrooms, 2 balcony's with amazing sunset views & a large loft. Community Center, pool, tennis courts and children's playground. Located near shopping, schools, entertainment & the I10 freeway!

Show Low AZ 85901

$574,900
3 Beds
2 Baths
1,448 SqFt
Status Active
MLS # 6731512
Property Type Single Family Residence
Price Type --
Your search is over for the Perfect Getaway Cabin in the Pines! Formal Model so has beautiful finishes throughout. This beauty conveys furnished so you can immediately come relax & enjoy the White Mountains. Nestled in the Tall Pines on apx .53 of an acre on a corner lot, landscaped & fenced. WOW! Call for more details...

17033 E Bobwhite Way Rio Verde, AZ 85263

$574,900
4 Beds
3 Baths
2,446 SqFt
Status Active
MLS # 6774586
Property Type Single Family Residence
Price Type --
Now complete, move-in ready, Just off 172nd (paved road). Minutes from trails, w/great hiking and Biking. Enjoy horseback riding with easy access to trails. The beautifully designed Durango Plan offers 10 ft high ceilings and polyurethane spray foam insulation for exterior house walls and attic. Open floor plan, great for entertaining. The kitchen features SS Appliances, White shaker-style cabinets with Soft Close Drawers and Doors, a nice-sized pantry, and a large Island for extra seating. Electric built-in cooktop with separate oven. Jack-N-Jill bedrooms with full bathroom. Tile-plank flooring throughout the home. The primary bedroom boasts a private exit to the back patio, a large closet, dual vanities, and a large easy access enclosed tiled shower. 3 car attached garage.

23012 N Giovota Drive Sun City West, AZ 85375

$574,900
3 Beds
2 Baths
1,904 SqFt
Status Active
MLS # 6769607
Property Type Single Family Residence
Price Type --
Discover the epitome of retirement luxury in this exceptional 1,904 sq ft home, perfectly positioned on a larger lot with no direct rear neighbors, offering maximum privacy and serenity. Embrace the elegance of a lushly landscaped front yard featuring a private courtyard complete with a cozy fireplace, setting the scene for unforgettable gatherings. Step inside and be greeted by the impressive rotunda foyer leading to an open-concept living space. Seamlessly connecting the living, dining, and kitchen areas, this layout is ideal for entertaining and everyday living. The kitchen boasts granite countertops, raised panel cabinets with both under and upper lighting, and a breakfast bar island for your culinary explorations. The primary suite is a sanctuary of comfort, offering ample room for a sitting area or office workspace, a walk-in closet, dual sinks, a vanity counter with granite tops, and a beautifully remodeled master walk-in custom shower. Across the home, find two additional spacious bedrooms with easy access to a second bathroom featuring a walk-in shower. This residence is further enhanced by plantation shutters, 18 southwestern tiled flooring, newer tile plank flooring in bedrooms, upgraded lighting fixtures, a newer hot water heater, and a water softener system. The rear yard is a private retreat with a raised conversation firepit area, built-in BBQ, extended patios, and rear awning  all designed for your relaxation and enjoyment. Experience active adult living at its finest in one of Corte Bella's most exquisite homes. Don't miss out on this unique opportunity to own a piece of paradise!

520 S Roosevelt Street Unit 1009 Tempe, AZ 85281

$574,900
2 Beds
2.5 Baths
1,483 SqFt
Status Active
MLS # 6743200
Property Type Apartment
Price Type --
Tempe Urban Living, now ''Skye 15 Lofts'', nestled within the Riverside-Sunset Neighborhood just west of Mill Avenue in Downtown Tempe, is truly an architectural gem. Designed by the Baldinger Studio, this large 2 bed, 2.5 bath loft shares a common modern DNA: open floor plans, exposed block construction, Rooftop Terraces, urban Backyard w/synthetic grass, and European style cabinetry. But most importantly, they share modern minimalist architecture that is unique not only to Downtown Tempe, but to the entire Valley of the Sun. This dwelling is walking distance to the Metro light rail, Tempe Town Lake, Mill Ave Streetcar, Whole Foods Marketplace, Mill Avenue with tons of shops and restaurants, ASU and everything else downtown Tempe has to offer!

3426 W Carter Road Phoenix, AZ 85041

$574,900
3 Beds
2.5 Baths
2,230 SqFt
Status Active
MLS # 6773448
Property Type Single Family Residence
Price Type --
This stunning home has it all! 4 y/o Woodside home with endless upgrades in gated community. Kitchen is perfect for preparing & sharing meals and memories, Gas stove with stainless range hood, wall oven and microwave, upgraded refrigerator, step in pantry, extended island and beautiful backsplash. Home has large den/office; upgraded shutters throughout the home. The backyard is a beach lover's dream with a gorgeous pool that has a fountain and a large Baja step. The backyard also has a custom Palapa and a putting green. Extended patio with ceiling fan and turf for easy maintenance. Surround sound is installed in the home. House was set back further than others to allow for a longer driveway for room to park an extended vehicle. Home neighbors beautifully landscaped greenbelt.

3448 W Sunshine Butte Drive San Tan Valley, AZ 85144

$574,900
4 Beds
3 Baths
3,291 SqFt
Status Active
MLS # 6777185
Property Type Single Family Residence
Price Type --
Welcome to this stunning 4-bedroom, 3-bath home, nestled near the beautiful San Tan Mountains in a wonderful neighborhood. This 3,290 square foot home features large vaulted ceilings and newer flooring throughout. The updated kitchen is perfect for any home chef, and the pebble tech pool offers a refreshing retreat. With solar panels and a Tesla charger connection in the 3-car garage, this home is both eco-friendly and convenient. Enjoy the spacious layout and all the modern amenities this home has to offer. The community also boasts a park, schools, walking paths, and plenty of shopping and restaurant amenities nearby.

4307 E Jesse Street Gilbert, AZ 85295

$574,900
3 Beds
2 Baths
1,693 SqFt
Status Active
MLS # 6784518
Property Type Single Family Residence
Price Type --
To be built: This beautiful Blue Streak plan, 1693 sf single story home with 2 car garage side entry garage is beautifully laid out with 3 bedrooms and 2 baths off a spacious great room with open kitchen. The master bedroom features a roomy walk in closet and a beautiful appointed master bath highlighted by a separate bath and shower. Come visit Cooley Station by Fulton Homes, you won't be disappointed!

1309 E Ellis Drive Tempe, AZ 85282

$574,900
3 Beds
2 Baths
1,852 SqFt
Status Active Under Contract
MLS # 6767556
Property Type Single Family Residence
Price Type --
No HOA!!! This beautiful 3-bed, 2-bath home w/ pool in a highly desirable area of Tempe offers all the convenience with easy access to the 101 & 60 freeways, Sky Harbor, ASU and all the dining and shopping you need! It gets even better with a complete remodel in 2018 including new wood-look tile flooring, new AC, new roof, new paint, new windows and new cabinets and countertops. This home is move-in ready with a washer/dryer and refrigerator as well as a neutral palette to suit any style. When you want to entertain, step outside to the expansive backyard where you will find an oasis ideal for entertaining, cooling off in the pool or simply enjoying the Arizona sunshine. The covered patio offers shade for those warm afternoons, while the low maintenance yard allows for more leisure time and less upkeep. Don't miss out on this incredible opportunity to own a piece of Tempe real estate! Come take a tour today and fall in love with everything this home has to offer. **Please note that the large cactus in the front yard was removed on 11/16/24.

12414 N 33rd Street Phoenix, AZ 85032

$574,900 - 3Br/2Ba -  for Sale in Hy View No 12, Phoenix
New
$574,900
3 Beds
2 Baths
1,508 SqFt
Status Active
MLS # 6787192
Property Type Single Family Residence
Price Type --
Beautiful 3 bed 2 bath home on a spacious lot with no HOA in Paradise Valley West! Enjoy east-west exposure and a remodeled interior featuring a formal living room, a family room, and wood laminate flooring. The updated kitchen boasts an Alexa-enabled Smart Faucet, island breakfast bar, quartz countertops, stainless steel appliances, and white shaker cabinets. The primary bedroom offers French doors to the backyard and a stylish en suite bathroom with touch-screen mirrors. Bonus: A separate guest house (single-wide) offers Airbnb potential or extra living space. The enclosed carport serves as a 2-car garage, complete with 220 EV charging, and the property includes two RV gates, a dog wash tub in the laundry room, and owned solar that conveys at no cost. cost, adding energy efficiency. Located near freeways, shopping, dining, schools, parks, and hiking trails, this home offers unbeatable convenience. Schedule your showing today!

2166 S 217th Lane Buckeye, AZ 85326

$574,900
4 Beds
2.5 Baths
3,523 SqFt
Status Active
MLS # 6729300
Property Type Single Family Residence
Price Type --
This spectacular two-story home is perfect for a large family with plenty of room to spread out! Enjoy New Paint outside, new carpet, a water softener, and OWNED solar panels for energy efficiency. Downstairs offers eat in kitchen to entertain your guests with ease. Upstairs boasts four spacious bedrooms with ample closet space. The master bedroom has French doors, walk-in closet and garden tub plus separate shower. Step outside to find your own private oasis complete with brand new sparkling pool, landscaping and views of the desert green belt! Plus there's an extended driveway, three car garage, RV gate and plenty of slab parking. This home is located conveniently close to shopping, restaurants, easy freeway access, hiking & more!

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