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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701 S Reynolds Lane Show Low, AZ 85901

$465,000
3 Beds
2 Baths
1,534 SqFt
Status Active
MLS # 6638533
Property Type Single Family Residence
Price Type --
Adorable home and amazing location! Gorgeous vaulted ceilings, 3bed/2bath split floor plan, large open kitchen and living space. Get cozy during the winters next to the beautiful stone gas fireplace, enjoy the springtime and summers on one of the large front or back decks and oversized fully fenced backyard! Spacious master bedroom includes large walk-in closet, double vanity, and jetted tub. This home is located in town nearby the hospital, grocery stores, and shopping all while being surrounded by tall pines and views throughout the neighborhood. Show Low Bluff Trail/Show Low Creek is only two minutes away, and you can even hear when the Elk are bugling! Whether you are searching for your primary home, or vacation home this is a MUST SEE! *Mounted coat rack, and TV Mount do not convey

8180 E Shea Boulevard Scottsdale, AZ 85260

$465,000
2 Beds
2 Baths
1,325 SqFt
Status Active
MLS # 6640901
Property Type Townhouse
Price Type --
Seize the opportunity to own a cozy, end-unit townhouse in The Vintage Condominium. The great room is welcoming with a gas fireplace, creating a perfect space for relaxation and entertainment. The kitchen boasts white shaker cabinets, a mosaic tile backsplash, built-in appliances, granite counters, a pantry, and a breakfast bar. The main bedroom is accessible through double doors, and it offers a private bathroom with dual sinks and a walk-in closet. A versatile den that can be used as an extra bedroom or a home office, depending on your needs. The balcony is a delightful space to unwind with a beverage. Residents of this community enjoy access to a spa, a refreshing pool, and other amenities, enhancing the living experience. This townhouse is a lovely home to make your own!

19182 N Smith Drive Maricopa, AZ 85139

$465,000
5 Beds
2.5 Baths
3,741 SqFt
Status Active
MLS # 6643831
Property Type Single Family Residence
Price Type --
Welcome home to Maricopa Meadows! This stunning gem has it all - from the sleek stainless steel appliances to the luxurious granite counters. The kitchen island and walk-in pantry make meal prep a breeze. Plus, newer 20'' tile floors and updated backsplash add a touch of elegance. Imagine hosting gatherings in the spacious loft/game room with a walk-out balcony and breathtaking mountain views. And let's not forget about the backyard oasis - complete with a private spa, built-in BBQ, firepit area, and a large covered patio. Fresh exterior paint completed in 2023 and newer hardwood/tile flooring throughout. It's the perfect place to unwind and enjoy the Arizona weather.

2401 E Rio Salado Parkway Tempe, AZ 85288

$465,000 - 3Br/3Ba -  for Sale in Villagio At Tempe Condominium Amd, Tempe
Open House
$465,000
3 Beds
2.5 Baths
1,380 SqFt
Status Active
MLS # 6652290
Property Type Townhouse
Price Type --
Resort style gated community! The Location can't be Beat! Walking distance to the Cubs Sloan Park Stadium. Right off of 101 & 202 FWY, ASU, Bus stops, Airport, Tempe Market Place! Popular 3 Bed & Den 2.5 Bath floorplan with a large open living area adjoining a full kitchen with island. Downstairs is the living area, spacious downstairs den/bonus room/large home office (at 126 SF!), Kitchen & breakfast area overlooking a private covered patio & backyard. Upstairs is master bedroom & master bath, laundry & 2 additional bedrooms with another bath. Two car garage and lots of additional guest parking in this beautifully maintained complex! 2 Pools and lots of area to walk your dog! Move in ready! Hurry! 3 bedroom unit sure to go quickly

18300 N Shimmer Lane Surprise, AZ 85374

$465,000
2 Beds
2 Baths
1,627 SqFt
Status Active
MLS # 6654095
Property Type Single Family Residence
Price Type --
Desired Madera model with great room floor plan, and heated salt water pool! Lush landscaping backyard provide plenty of privacy when frolicking in the salt water pool. Home has been professionally modified to a large open great room, ideal for a larger table and game area. Inside features plantation shutters throughout, GE profile kitchen appliances, additional kitchen cabinets with built-in desk, a bay window in the primary bedroom, two sinks in primary bath, and inside laundry with utility sink. Garage has built-in and workbench. The pebble-tec pool pool with its attractive water feature is heated and self-cleaning. Your tropical backyard has an extended covered patio with pull-down shades and strategically planted foliage that provide privacy.

403 W Mesquite Street Chandler, AZ 85225

$465,000
3 Beds
2 Baths
1,441 SqFt
Status Active
MLS # 6657472
Property Type Single Family Residence
Price Type --
Excellent curb appeal in this lovely single-story, Chandler home. Three bedroom, two baths and a spacious backyard. New interior and exterior paint. New dishwasher, nest thermostat. Pool completely redone with new equipment a few years ago. Walking distance to Hoopes park. No HOA. 3.5 miles to Downtown Chandler restaurants and easy access to the 101 and 60 interstates. Make this your home today!

1007 W Pegasus Drive Tempe, AZ 85283

$465,000
3 Beds
2.5 Baths
1,462 SqFt
Status Active
MLS # 6657497
Property Type Single Family Residence
Price Type --
QUALIFIES FOR LOW INTEREST RATE PROGRAM! Premium corner lot in amazing Tempe location move in ready!! Amazing opportunity for first time buyers or investors for a prime rental. All new flooring, appliances, vanities, everything new! 3 bed 2.5 bath plus a loft & a 2 car garage. Kitchen is open to the over-sized family room & features stainless steel appliances, gas range. All bedrooms including the primary suite are located on the second level. Primary suite has a double balcony & primary bathroom has dual sink vanity along with a shower tub combination. Easy care paver patio with room for dogs and activites. Prime Tempe location with easy access to freeways, Kiwanss Park & minutes from ASU. If you're looking for a very nice, clean, solid home this is for you!

3789 E Yorkshire Circle San Tan Valley, AZ 85140

$465,000
4 Beds
2 Baths
2,134 SqFt
Status Active
MLS # 6658819
Property Type Single Family Residence
Price Type --
PRICE ADJUSTMENT -This delightful property is nestled on a premium corner lot! Immaculate interior boasts vaulted ceilings, tons of tile flooring, fresh/new carpet in all the right places, graceful archways, & a spacious living/dining room w/French doors to the custom AZ room. The kitchen was update w/newer appliances, recessed lighting, granite counters, & ample white cabinetry w/crown molding. Super island w/a breakfast bar & a breakfast nook is ideal for casual dining. The generously sized AZ Room is bathed in sunlight with ceiling fans, excellent for year-round entertainment. Retreat to the main suite, w/ AZ room access, a full ensuite w/dual sinks, & a walk-in closet. Delightful backyard has artificial turf landscape & looks like a beautiful park!

21233 N 30th Avenue Phoenix, AZ 85027

$465,000 - 3Br/2Ba -  for Sale in Foothills North 2, Phoenix
Open House
$465,000
3 Beds
2 Baths
1,750 SqFt
Status Active
MLS # 6659219
Property Type Single Family Residence
Price Type --
Beautiful north Phoenix home in a great location! Luxury vinyl plank flooring and new interior paint provide a bright, neutral landscape for you to personalize. An Arizona room makes a perfect sitting area with it's own mini split, office or gym space. Backyard with grass, patio and paved sitting area. White cabinets in the kitchen and new fixtures have modernized this great home. No neighbors behind, backs to grass field. Additionally, the inclusion of solar panels, new Ecobbe thermostat and a Tesla charger highlights the home's commitment to sustainability and modern technology, offering both energy efficiency and convenience for electric vehicle owners. Overall, this property presents an appealing combination of comfort, style, and practicality.

764 S 78th Place Mesa, AZ 85208

$465,000
2 Beds
2 Baths
2,190 SqFt
Status Active
MLS # 6660632
Property Type Single Family Residence
Price Type --
Welcome Home to this Terrific UPDATED Corner Lot Home in Fountain of the Sun, An Active Adult Community in East Mesa. 2 Bedroom + Office, 2 Bath w/ Vaulted Ceiling & Large Addition (3rd Bedroom) that has a Murphy Bed & Closet (2190 Total sq ft), 2 Car Garage, BRAND NEW KITCHEN w/Updated Kitchen Cabinets w/ Granite Counters & Stainless Appliances, BRAND NEW Luxury Vinyl Flooring Throughout & Tile Flooring, Large Primary Bedroom & NEW Updated Primary Bathroom Cabinets w/ Walk-In Shower, Nice Sized Guest Bedroom, Guest Bath with Tub/Shower, NEW Roof (2020), HVAC (2018), Great Fenced Backyard Area w/ Large Covered Patio which is great for Entertaining!! DO NOT MISS THIS ONE!

16790 N 183rd Drive Surprise, AZ 85388

$465,000
4 Beds
3.5 Baths
2,645 SqFt
Status Active
MLS # 6660940
Property Type Single Family Residence
Price Type --
Welcome to this remarkable 4 bed, 3.5 bath home in Surprise Farms! Displaying a sided 2-car garage, well-manicured front yard, & a cozy front porch. Discover a desirable open layout that creates an inviting ambiance for everyday living and entertaining. The kitchen boasts SS appliances, granite counters, a pantry, cabinetry w/crown molding, and an island w/breakfast bar. Plush carpet adds comfort to the upstairs! The spacious loft is a versatile space. This gem has two main bedrooms! The first one features an ensuite with dual sinks, separate tub/shower, & a walk-in closet. The second one also includes a walk-in closet & a full bathroom for your convenience. Check out the large backyard offering a covered patio! With your creative ideas, you can make it a complete outdoor oasis. Act now!

10418 E Watford Way Sun Lakes, AZ 85248

$465,000
3 Beds
2 Baths
1,823 SqFt
Status Active
MLS # 6661330
Property Type Single Family Residence
Price Type --
NEED SPACE? Spacious open floorplan in Cottonwood -Active Adult Community of Sun Lakes. / 3 Beds/2 baths, plus gigantic AZ Room, large 2 car garage w/ enclosed workshop. Sits on a large N/S private lot with full length side yard covered patio. Lots of windows, custom lighting, magnificent finishes like tile & laminate flooring, soaring vaulted ceiling, great room& oversized bedrooms You'll love the gourmet kitchen w/ granite countertops, dual breakfast bars, newer upgraded stainless-steel appliances, breakfast room, walk-in pantry & large laundry area. The owner's retreat is gigantic w/ multiple closets and private exit. Master bath has double sinks and beautiful walk-in shower. Come experience the magnificent Resort Lifestyle that Sun Lakes Active Adult Community. Enjoy the Community Heated Community Pools and Spas, 5 Golf Courses. Tennis and Pickleball Courts, Hiking and Walking Paths, Numerous Social Clubs, Clubhouse & exercise areas and much much more. All within minutes of Shopping, Hospitals, Entertainment, Sports Complexes, Restaurants, Parks, Casinos, Colleges, Resorts, Sky Harbor Airport and Freeway access.

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