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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20540 W Nelson Place Buckeye, AZ 85396

$489,000

3 Beds

2.5 Baths

1,860 SqFt

Status Active

MLS # 6680273

Property Type Single Family Residence

Price Type --

Absolutely immaculate 3 bed PLUS Den home in Verrado! The main living areas have beautiful modern tile flooring and an open concept with large great room and huge slider to backyard. Spacious kitchen includes espresso cabinets, stainless steel appliances, granite counters, island with breakfast bar, and pantry. The large primary suite has a large bath featuring dual sinks, separate walk-in shower & soaking tub & walk-in closet, and access to patio. Modern 6 panel doors throughout entire home. The spacious backyard has plenty of room! This home is located close to I-10 and all the amenities Verrado has to offer including a resort-style pool and recreation center, fitness center, multiple parks, dog parks, clubs, BB! ramadas, golf club, and more.

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10746 W Wheatridge Drive Sun City, AZ 85373

$489,000

3 Beds

2 Baths

2,153 SqFt

Status Active

MLS # 6677186

Property Type Single Family Residence

Price Type --

Stunning views for days! Welcome to this customized Forrester model w/stucco exterior positioned on 13th hole of Willow Creek Golf Course. You will love vaulted ceilings, tile floors w/carpet in bedrooms, tons of natural light, custom touches in kitchen with SS appliances & floor to ceiling cabinets. Plenty of space for entertaining, & spectacular sunsets. Boasting a huge master bedroom w/beautifully appointed ensuite, property also features 2 large guest bedrooms & guest bath in hall. Plus, the wonderful enclosed heated/cooled sun room featuring wall-to-wall windows overlooking an amazing view of the lush golf course(with 2 sliders to 2 sep patios.) WiFi remote controlled thermostat & garage door opener. In the garage, you'll find a work bench w/peg boards, & shelving a wall-mounted a/c plus heavy duty mounted overhead storage. Property is conveniently located near shopping, entertainment, restaurants & medical facilities.

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5608 W Pontiac Drive Glendale, AZ 85308

$489,000

3 Beds

2 Baths

1,610 SqFt

Status Active

MLS # 6686350

Property Type Single Family Residence

Price Type --

Desirable single level home with Pool in Arrowhead Ranch. Conveniently located near Arrowhead Mall, Restaurants & Entertainment, with easy access to 101. Open concept floorpan, with fireplace in great room. HAVC new 2021. Save on APS bills with Solar! Great Schools. Extended Flagstone patio outside next to sparkling pool and Spa. Incredible potential and Priced to sell !!

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Wickenburg AZ 85390

$489,000

3 Beds

3 Baths

2,894 SqFt

Status Active

MLS # 6691196

Property Type Single Family Residence

Price Type --

TASTEFULLY REMODELED! Modern comfort meets convenience in this charming home nestled on a large corner lot. Providing 3 beds, 3 baths, lush front yard, & carport parking spaces. Highly upgraded interior boasts fresh neutral paint, ceiling fans, recessed lighting, and wood-look flooring w/plush carpet in bedrooms. The spacious living & dining room features a fireplace & picture windows for tons of natural light! The spotless kitchen boasts SS appliances, quartz counters, recessed lighting, a breakfast bar, & ample shaker cabinetry. Main bedroom has a walk-in closet & an ensuite w/dual sink. Versatile den is great for an office. Moving outdoors, tranquility awaits in the backyard! A covered patio, built-in BBQ, mature trees, storage shed, & a fenced area complete the picture. Move-in ready!

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18525 N Madison Road Maricopa, AZ 85139

$489,000

4 Beds

2.5 Baths

3,274 SqFt

Status Active

MLS # 6693212

Property Type Single Family Residence

Price Type --

Welcome to your dream home in Maricopa Meadows! This 4 bed, 2.5 bath oasis boasts upgrades throughout, including new energy-efficient windows and a newly installed HVAC system upstairs. The loft features a surround sound system, perfect for entertainment. Master bedroom is conveniently located downstairs, while the remaining bedrooms upstairs offer walk-in closets and ceiling fans for comfort. The modern kitchen is equipped with new appliances, including a stove and dishwasher, making meal prep a breeze. Outside, the expansive backyard is a true paradise with a gated-off pool featuring a beautiful waterfall. The patio is equipped with misters, creating a refreshing retreat for outdoor gatherings. With upgrades at every turn and luxurious features both indoors and out,

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4051 E Meadow Drive Phoenix, AZ 85032

$489,000

3 Beds

2 Baths

1,346 SqFt

Status Active

MLS # 6697358

Property Type Single Family Residence

Price Type --

Welcome to your spacious oasis in the heart of convenience and comfort! Step inside and be greeted by the seamless flow of an open floor plan, where the cozy living area effortlessly blends with the dining space, creating an inviting atmosphere perfect for gatherings and relaxation. The cabinetry in the kitchen not only adds a touch of elegance but also provides ample storage for all your culinary essentials.Venture beyond your doorstep and find yourself within walking distance to schools and pristine parks, making it ideal for seeking convenience and community. Plus, with easy access to freeways, commuting is a breeze. Endless shopping and dining options at nearby Desert Ridge, where a plethora of restaurants and entertainment venues await to satisfy every craving and whim.

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5010 S Turbine -- Mesa, AZ 85212

Open House

New

$489,000

3 Beds

2.5 Baths

1,898 SqFt

Status Active

MLS # 6704455

Property Type Single Family Residence

Price Type --

Welcome to your beautifully updated 3-bedroom, 2.5-bathroom haven! This home surpasses new with its fresh appliances, plush carpeting, sleek hardware, and modern fixtures. Impeccably painted and spotless, it eagerly awaits your family's arrival. Outside, revel in the low-maintenance turf backyard. Nestled in Eastmark, indulge in the community's abundant amenities: meander or cycle along scenic trails, luxuriate in green spaces and the inviting community pool, and relish meals at the Handlebar Diner. With over 100 vibrant events and activities, boredom is simply not an option. From concerts at the pavilion to bustling farmers markets and the thrilling Eastmark AwesomeFest, there's always something exciting in store. Welcome home to endless possibilities!

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3516 S Seneca Way Gilbert, AZ 85297

Open House

$489,000

3 Beds

2.5 Baths

1,931 SqFt

Status Active

MLS # 6690472

Property Type Single Family Residence

Price Type --

WOW !! This Stunning home is Nestled in the serene neighborhood of Power Ranch. Pristine and immaculate, YOUR NEW 3 Br ,2.5 bath ,1car garage home offers a spacious open concept layout designed for modern living. Sunshine filled gives brightness shining in daily . The Master suite is a sight to behold. DBL sinks, walk in closet and a make up area. The heart of the home is a gourmet kitchen adorned with sleek appliances and ample counter space. Step outside through an oversized almost full wall of sliding glass doors to an upgraded backyard with artificial turf & pavers t/o. Enjoy a great relaxation setting for endless summer days and starlit evenings. On cold chilly nights your living room turns into a romantic colorful flame changing room with a built in modern flame fireplace. Need more privacy the living area is equipped with electric roller shades .YES what else does one need. This house has everything anyone could want. All higher end bronze fixtures through this home adds a touch of class and character. The Community is filled with fun amenities LOCATED IN THE LAKE SUBDIVISION . A pool , spa, BBQ area ,gazebo, walking path , playground ,tennis, basket ball courts and so much more. Don't take my word for it come feel the fun, serenity and beauty for your self.

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18185 W Windermere Drive Goodyear, AZ 85338

$488,995

3 Beds

2 Baths

1,672 SqFt

Status Active

MLS # 6571144

Property Type Single Family Residence

Price Type --

Stylish single-level home design with upgraded features throughout. The open-concept kitchen, dining room, and great room offer the perfect space for entertaining. The secluded primary bedroom suite provides a perfect getaway and is complemented by a luxe bath with dual-sink vanity, a glass-enclosed shower, and large walk-in closet. Additional highlights include expansive sliding doors to the desirable rear covered patio, a convenient drop zone, and centrally located laundry.

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3319 W Verde River Road San Tan Valley, AZ 85144

$488,990

3 Beds

2 Baths

1,784 SqFt

Status Active

MLS # 6678861

Property Type Single Family Residence

Price Type --

Popular Arroyo floor plan featuring 3 bedrooms plus open study/den. , Beautiful kitchen with upgraded cabinets, granite countertops, plank tile flooring, upgraded lighting and plumbing fixtures, and much more. Our Master Planned community boasts a 7400 square foot community pool, 6 spacious parks, 3 basketball courts, sand volleyball, pickle, ball, bocce ball and corn hole. This community is an ideal location near the base of the San Tan Mountains and close to all the best shopping has to offer.

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10331 W Romley Road Tolleson, AZ 85353

Open House

$488,925

5 Beds

3 Baths

2,241 SqFt

Status Active

MLS # 6700945

Property Type Single Family Residence

Price Type --

''HOME SWEET HOME'', This Brand New Spacious Smart Home offers 5 bedrooms, 3 baths, 2 car garage + Double Gate, open living space all on one level. Great for entertaining & family fun, this home has an open concept w/ a beautifully upgraded kitchen, great room, dining area. Great Kitchen with wonderful island and features upgraded cabinetry, quartz countertops, stainless steel appliances. The large main suite is tucked in back of the home w/a private bath and spacious walk-in closet. The large, covered patio offers comfortable outdoor living! Additional upgrades include 6x36 wood look tile flooring throughout except Bedrooms, window coverings & garage door opener + More....A Must See. Interior Photos are of a Model Home. Interior and exterior finishes may differ.

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4244 Ponderosa Trail Wickenburg, AZ 85390

$488,900

2 Beds

2 Baths

1,714 SqFt

Status Active

MLS # 6603865

Property Type Single Family Residence

Price Type --

HUGE END OF SEASON PRICE REDUCTION! Welcome to resort-style living in Wickenburg Ranch. 2-bedroom, 2-bathroom home with a flexible office/den. Has 10' ceilings, upgraded kitchen, an extended garage and is very well maintained. With easy access to everything, this home is perfect for year-round living or as a retreat for part-year residents. All that you'd expect with granite counter tops, wood-look plank tile flooring, flowing floor plan and room to entertain! And with no homes behind, enjoy the quiet and serenity your back yard. Modern amenities, scenic views, and the Wickenburg Ranch lifestyle at your doorstep mean this isn't just a home; it's a ticket to Wickenburg's best-kept secret. Your next adventure awaits, SEE THIS HOME BEFORE IT'S GONE!

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