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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21053 N 110th Way Scottsdale, AZ 85255

$27,500,000
6 Beds
8.5 Baths
15,000 SqFt
Status Active
MLS # 6142312
Property Type Single Family - Detached
Price Type --
Never before listed, this magnificent private estate awaits a most discerning owner! Situated behind its own private gates on 4.7 acres within the guard-gated Upper Canyon of Silverleaf. This extraordinary 15,000+ sq ft. architecturally designed by visionary Dale Gardon & built by award winning Salcito Custom Homes offers French limestone & French Oak flooring throughout. Sophisticated bathrooms feature heated flooring & steam showers. Fantastic fully equipped guest house includes washer / dryer, dual custom walk-in closets & private outdoor oasis. Large gym & 6 car airconditioned garage bays. Spectacular outdoor spaces cater to every whim; deep diving pool, spa, firepit, kitchen, multiple sitting areas w/ fireplaces & ceiling heaters guarantee stunning Arizona living & entertaining!!

27780 W Ox Ranch Road Congress, AZ 85332

$25,000,000
5 Beds
4 Baths
2,328 SqFt
Status Active
MLS # 6016821
Property Type Single Family - Detached
Price Type --
The O.X. - Little Horse Ranch is an approximately 95,000 +/- acre ranching operation including the 65,620 +/- acre O.X. farm and ranch including 2,292+/- deeded acres located in the high Sonoran Desert 15 miles North of Wickenburg, AZ and the 29,072 +/- acre Little Horse Ranch located in the pine-covered country along the I-17 freeway beginning 3 miles south of Flagstaff, AZ. The 140-year old O.X. Ranch, which is regarded by many as the finest desert ranch in the Southwest, extends from the town of Congress, AZ, at a 3,000 ft. elevation, to the pine-covered peaks of the Weaver Mountains at almost 6,000 feet. The three perennial streams that converge at the headquarters, together with a spring that produces several hundred gallons of water per minute, a 30ft. water table, and a 13 ACRE LAKE

7620 N Red Ledge Drive Paradise Valley, AZ 85253

$20,000,000
9 Beds
14 Baths
18,000 SqFt
Status Active
MLS # 6097421
Property Type Single Family - Detached
Price Type --
EXTRAORDINARY CONTEMPORARY MASTERPIECE BY CP Drewett! UNPARALLELED VIEWS, PRIVACY, AND LOCATION! This spectacular, fully customizable, contemporary build-to-suit home, perfectly situated on a 16.4 acre mountain top Paradise Valley estate lot, presents the most discriminating individual an opportunity to have it all. Located within a guard-gated community, and behind its own private gate, the privileged owner of this extraordinary home will possess a unique level of privacy and seclusion rarely found, especially when considering the area's best fine dining, shopping, and entertainment are within 15 minutes drive, and both the Phoenix Sky Harbor International and Scottsdale Airports are only 20 minutes away. This remarkable property offers two breathtaking building pads. Must Watch Videos

15860 E Rio Verde Drive Scottsdale, AZ 85262

$19,500,000
4 Beds
8 Baths
8,744 SqFt
Status Active
MLS # 6106214
Property Type Single Family - Detached
Price Type --
A coveted Modern West lifestyle awaits in the glorious Sonoran Desert at MorDo Ranch. Located just minutes from all the amenities Scottsdale has to offer, this 19-acre horse ranch offers both luxury home living along with superb horse facilities. The main residence, designed after an Argentinian Estancia, displays Kitchell commercial building expertise tailored to a magnificent and welcoming estate home, with open floor plan, private his and her offices, two separate guest suites and intimate entertaining areas. Among the estate grounds are a 10-stall barn, two corrals, and four 5-acre pastures. Closer to the main residence are two managers homes, greenhouse and both pool and tennis court.

10719 E Rimrock Drive Scottsdale, AZ 85255

$18,750,000
6 Beds
8 Baths
13,111 SqFt
Status Active
MLS # 6144446
Property Type Single Family - Detached
Price Type --
Backdropped by the magnificent McDowell Mountains, this incredible Silverleaf estate boasts dramatic views of the vibrant golf course and the twinkling city lights of the Valley below. Designed and built for the most discerning, the home features qualities authentic to a timeless California-style estate with a private gated entrance leading to an extended driveway and grand motor court. Impeccable attention to detail, the finest materials and unparalleled craftsmanship were executed perfectly throughout. Strategically placed on a 9-acre signature homesite is the 13,111 square foot, 6-ensuite bedrooms, 8 bath, timeless home with a detached 1,789 square foot, two-bedroom guest home. This was the first home built in Silverleaf to achieve LEED certification for energy efficiency.

41927 N Saguaro Forest Drive Scottsdale, AZ 85262

$16,500,000
5 Beds
5.5 Baths
9,860 SqFt
Status Active
MLS # 6012791
Property Type Single Family - Detached
Price Type --
The Bacon House at Desert Mountain is a stunning classically modern 9,860 square foot home, designed by Master of the Southwest Architectural Designer Bob Bacon. This south-facing, five-bedroom, open plan home and gallery will be built in Desert Mountain, a secure, gated, private club and recreation-oriented master planned community in Scottsdale, Arizona. The capstone of a storied career, Bacon has created a true masterpiece of livable architectural art destined to be one of the finest homes anywhere; replete with the most advanced technology (including being solar powered) and 5,550 SF of climate-controlled collector's galleries for the safe display of prized possessions such as automobiles, art, or sculpture. A Bacon curated collection of furnishings is also available separately.

5335 N Invergordon Road Paradise Valley, AZ 85253

$14,990,000
6 Beds
13 Baths
25,851 SqFt
Status Active W/contingency
MLS # 5892742
Property Type Single Family - Detached
Price Type --
This fabulous gated 25,000 sq ft. estate built in 2013 has views of Camelback Mountain overlooking a beautiful terraced cascading pool + grounds. The residence has exquisite mahogany ceilings and cabinetry, 6 automated pocket doors to the outside, a 2 story high living rm, 2 bedrm master suite w sitting rm 2 master baths + 2 closets. There is a gourmet kitchen w 2 large center islands and marble floors opening to a 1,750 sq ft family rm, an extraordinary two-story library, a 12 seat theatre, wine rm, a lounge bar, 2 offices, an exercise rm with glass steam rm + sauna + an attached guest home.The main rooms: kitchen, master suites, office and library are on the main floor. This home was built to commercial standards. There is also a 25 person elevator, add'l elevator + shooting range.

10944 E Whistling Wind Way Scottsdale, AZ 85255

$14,950,000
7 Beds
9.5 Baths
11,794 SqFt
Status Active
MLS # 6175522
Property Type Single Family - Detached
Price Type --
Renowned architect Bing Hu has created another masterpiece in the Upper Canyon of the prestigious and highly acclaimed Silverleaf community. This 11,794 SF estate is a modern adaptation of the Prairie style of architecture, perfectly situated sitting on the high foothills of the McDowell Mtns with panoramic city lights, mountain and valley views. The superb quality of the finishes and the amenities included are sure to please the most discerning: 5 ground floor bedrooms and 2 bedroom guest house, 11 car garage, spacious gym, sport court and pickleball court, media room and separate golf simulator room, large negative edge pool, spa and lounging pool - Certainly everything you'd expect in a home of this stature.

5021 E Arabian Way Paradise Valley, AZ 85253

$12,950,000
6 Beds
9 Baths
16,083 SqFt
Status Active
MLS # 5826956
Property Type Single Family - Detached
Price Type --
Timeless Classic Elegant Masterpiece! Surround yourself in complete tranquility and luxury on almost 5 spectacular acres enveloped by mountains, lush grounds and magnificent gardens. This prestigious residence has been masterfully remodeled to be one of the finest estates in Paradise Valley. With over 16,000 square feet comprising 6 bedrooms and 9 bathrooms, this exquisite home boasts a stunning grand entrance, soaring uniquely decorated ceilings, large scale rooms with finest architectural features including sophisticated finishes throughout with details sourced the world over and a floorplan that is formal, yet creates a comfortable and inviting ambience. Other luxury amenities include; formal living and dining rooms, family style great room and open chef's kitchen,

5950 E Valley Vista Lane Paradise Valley, AZ 85253

$12,750,000
7 Beds
10 Baths
12,295 SqFt
Status Active
MLS # 6151640
Property Type Single Family - Detached
Price Type --
With state-of-the-art 2019 renovations and upgrades by John Schultz, a beautifully re-envisioned and chic interior by Donna Vallone, and pristine landscaping by Berghoff Design, this 2 1/4 ACRE Very Private Estate exudes cool sophistication and boasts stunning FULL CAMELBACK MTN VIEWS! Multiple French doors frame Camelback Mtn and open to the HUGE Backyard with expansive green lawns, a fully tiled pool, cabana, sport court, putting green, private jogging path + flower gardens. Highlights include 16-Ft ceilings, a FULL 2BDRM GUEST HOME, SEPARATE EXERCISE BLDG (or 2nd guest house), 2 family rms, White Designer Chef's Kitchen, an elegant 2 story library, white Carrara marble bathrms, 2 huge outdoor entertainment patios, + groin vaulted ceiling in hallways. Upgrades include New Cabinetry,

6000 E Cameldale Way Paradise Valley, AZ 85253

$12,500,000
6 Beds
8 Baths
11,878 SqFt
Status Active
MLS # 6172920
Property Type Single Family - Detached
Price Type --
This idyllic Spanish Colonial Revival Estate sits on one of the best view lots in Cameldale. From northern mountain ranges to Four Peaks and beyond, an evening on the patio will take your breath away! Casually elegant and fastidiously maintained, this easy and generous floor plan offers a grand entry into an attractive living room with striking 16' ceiling detailed with rich beams and flowing into one of the most charming dining rooms ever to entertain your guests. All of the high 14-16' ceilings throughout reveal eye-catching designs, each different and impressive. A wood paneled library sits just off the foyer enriched with beautifully crafted millwork and high arching windows to take in the view of Camelback Mountain. The inviting family room is warmed with fireplace and bar service...

11007 E Saguaro Canyon Trail Scottsdale, AZ 85255

$11,995,000
6 Beds
8 Baths
10,700 SqFt
Status Active
MLS # 6150750
Property Type Single Family - Detached
Price Type --
Timeless European Elegance with Spectacular city light & mountain views on a private quiet street. Candelaria Design & Sommer Custom Homes have combined their talents to create a Fine Work of Art with intricate details woven into a functional livable light filled floorpan capturing spectacular views from all angles of the home and creating one of Silverleaf's Finest Estates. Each ceiling is a work of art in itself incorporating hand carved beams & stone and light colored brick & Venetian plaster. 11 fireplaces, several lush garden courtyards & fountains, Guest House, 5-car garage, theater room, game room w/bar, outdoor kitchen, Lutron & Crestron automation systems, Gas Lanterns, Furniture grade cabinetry throughout including all closets, Home impeccably maintained.

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