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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5759 S Creosote Drive Gold Canyon, AZ 85118

$479,900
3 Beds
2.5 Baths
2,286 SqFt
Status Active
MLS # 6590409
Property Type Single Family Residence
Price Type --
Seize the opportunity—motivated seller! Three bedrooms, two and a half bathrooms, 2,286 sq. ft., —an exquisite blend of comfort and elegance. Immaculate in condition and available for immediate occupancy, this property invites you to embark on a new chapter effortlessly. With a meticulously crafted layout catering to both relaxation and entertainment, this home presents itself as a versatile canvas of limitless potential, awaiting your personal customization. Embrace the tranquility of the MountainBrook Golf Course in Gold Canyon, AZ and indulge in the amenities offered at the MountainBrook Village Clubhouse. Tailored for active adults, this vibrant community now features a reduced price on this exceptional home listing.

11141 E Stearn Avenue Mesa, AZ 85212

$479,900
3 Beds
2.5 Baths
2,234 SqFt
Status Active
MLS # 6667779
Property Type Single Family Residence
Price Type --
If you are LOOKING for a GREAT LOCATION, NICE FLOOR PLAN, and AFFORDABLE PRICE, then WE HAVE A BEAUTIFUL HOME FOR YOU*Sitting room, DEN, and half-bath down stairs*KITCHEN has ISLAND, GRANITE COUNTERS and BACKSPLASH, and GAS STOVE*You can APPREICATE the EXTRA ROOM with a LOFT*LAUNDRY is upstairs*A/C appx 5 yrs old*NICE STORAGE OPTIONS*OWNER SUITE has LARGE WALK IN closet and DUAL SINKS at BATH*GENEROUS SECONDARY BEDS have WALK IN CLOSETS*FANTASTIC BACK YARD includes extended PATIO of PAVERS and PERGOLA and CONVENIENT EASY-CARE TURF*COME BY and SEE WHY you WILL WANT to CALL this PLACE YOUR ''HOME''

20807 N Grantham Road Maricopa, AZ 85138

$479,900
4 Beds
2.5 Baths
3,267 SqFt
Status Active
MLS # 6669700
Property Type Single Family Residence
Price Type --
Step into your dream home with this enchanting 4-bedroom (plus den), 2.5-bath two-story nestled in the coveted community of Homestead North in Maricopa. A quiet retreat, this residence boasts a 3-car tandem garage and the luxury of no homes behind, offering breathtaking views of majestic mountains - a true sanctuary for tranquility seekers. The curb appeal is nothing short of fabulous, with perfectly arranged desert landscaping guiding you along a paver walkway to the front, covered patio featuring a striking custom iron and glass door. As you step inside, a bright and open living room and dining room welcome you, creating a sprawling space that exudes warmth. The kitchen is a vision of elegance with stainless steel appliances, crisp white cabinetry (complete with a Lazy Susan and hidden trash/recycle bin cabinet), granite counters, and an island with bar top seating - perfect for both preparation and serving. A walk-in pantry and a tucked-away Butler's pantry area provide ample storage space, ensuring functionality meets style seamlessly. The kitchen effortlessly flows into the window-lined family room, where sliders open to the back patio, inviting the serenity of the outdoors inside. A convenient half bath downstairs adds to the thoughtful design. Ascend the stairs to discover a versatile, open den - a space that could serve as a play/game room, study, or an additional family room. The bedrooms are a haven of comfort and style. The primary suite, with a double door entry, offers a bonus room with endless possibilities - a temporary nursery, home office, gym, or simply a quiet place to relax and read. The primary bathroom is a spa-like retreat, featuring an extended vanity, garden tub, glass shower, private toilet, and a huge walk-in closet with built-in shelving. The upstairs laundry room, complete with shelving and a drying rack, adds a touch of convenience to your daily routine. Venture outside to a delightful backyard, where a large covered patio, extended paver patio (ideal for a BBQ area), and green artificial turf create the perfect setting for entertaining or quality family time. The added bonus of solar panels, completely covered by the seller at the close of escrow, adds an eco-friendly touch to this remarkable property. Homestead North offers a host of amenities for everyone to enjoy, including walking/jogging and biking paths, children's playgrounds, BBQ areas, a volleyball court, basketball courts, and even a subdivision lake. Don't miss the opportunity to experience the magic of this must-see property in Homestead North - schedule your viewing today!

25719 N Cinch Drive Peoria, AZ 85383

$479,900
3 Beds
2 Baths
1,922 SqFt
Status Active
MLS # 6657850
Property Type Single Family Residence
Price Type --
Welcome to sunny Peoria Arizona! We are very proud to list this gorgeous Lennar home, that boasts over 1900 square feet, a chef's kitchen with a gas stove, quartz countertops, tiled backsplashes, stainless steel appliances, under cabinet lighting and a large pantry! Each bedroom has a large walk-in closet and lots of space! The rear patio is welcoming and well shaded, the yard has Kentucky blue grass turf and a gas stub just waiting for a BBQ/Firepit!! The 14' sunshade lets you take in those Arizona sunsets just the way you like! Wide streets, large homes and lots, children's play area nearby, there are hiking trails, great dining within minutes and a brand-new Fry's Marketplace opened just down the street! This place has it all plus amazing neighbors!! Come see your next home today!

3718 E Thames Circle San Tan Valley, AZ 85140

$479,900
3 Beds
2 Baths
2,014 SqFt
Status Active
MLS # 6667265
Property Type Single Family Residence
Price Type --
Beautiful residence featuring a spacious 3-car garage in the Castlegate Community is the one you've been looking for! Prepare to be impressed by a welcoming interior showcasing neutral tile floor, arched doorways, soothing palette throughout, & a delightful modern fireplace. The immaculate kitchen boasts wood cabinetry, black stainless steel appliances, recessed lighting, a pantry, & a convenient center island equipped with a breakfast bar. End your long & busy day in the primary bedroom, comprised of soft carpet in all the right places, a private bathroom with dual sinks, & a walk-in closet. Gather your loved ones in the wonderful backyard including a covered patio, swaying palm trees, a sparkling blue pool, & a cozy firepit! Don't miss out on this one!

4783 N Rim Vista Drive Pine, AZ 85544

$479,900
3 Beds
2 Baths
1,035 SqFt
Status Active
MLS # 6675669
Property Type Single Family Residence
Price Type --
Your cabin in the woods! This coveted Portal II location will give you views out to the Mogollon Rim year round. Enjoy the beautiful summer evenings grilling off of your trex deck and soaking in life. This is a private gated community and is an excellent jumping off point to explore the area. The rivers, lakes and trails will keep you busy all year long!

4829 N 74th Street Scottsdale, AZ 85251

$479,900
2 Beds
2 Baths
1,138 SqFt
Status Active
MLS # 6683467
Property Type Townhouse
Price Type --
This newly remodeled unit is ready for you to make it your own! Ground floor condo in the heart of Old Town Scottsdale features 2 spacious bedrooms, 2 remodeled bathrooms, a bright kitchen blending with a spacious living/great room that features a beautiful wood burning fireplace. The large patio is steps from the ''spa style'' community pool with gorgeous sunset views. Casa Bonita South is a special community with just 12 units and beautiful common areas. The condo is located within walking distance of the Fashion Square Mall, Waterfront area and Scottsdale's best restaurants and nightlife. Close to the Greenbelt and Canal for walking and biking.

7009 E Acoma Drive Scottsdale, AZ 85254

$479,900
2 Beds
2 Baths
1,158 SqFt
Status Active
MLS # 6688794
Property Type Apartment
Price Type --
Fantastic location for this gorgeous Scottsdale Condo! Ground floor unit with tons of upgrades and north/south exposure. 2 bed 2 bath with stainless steel appliances, granite counter tops, and newer wood floors in main living areas. Two large bedrooms, both with walk-in closets. Both bathrooms have been upgraded and the primary bath includes a double vanity with tumbled travertine tile and travertine shower! Fantastic community with many amenities and a short distance to Kierland and Scottsdale Quarter! HVAC replaced in 2018. Attention Investors!! These units rent out regularly and consistently for both furnished and unfurnished units!

13622 W Redfield Road Surprise, AZ 85379

$479,900
3 Beds
2 Baths
2,294 SqFt
Status Active
MLS # 6672878
Property Type Single Family Residence
Price Type --
Beautiful single level home located in the sought after Litchfield Manor subdivision. Popular 3 bedroom + den/office, 2 bathroom split floor plan with an open kitchen extending into the living room & large formal living room/dining area. Kitchen has loads of cabinets, walk-in pantry, island & eating area overlooking the family room. Large master bedroom & bathroom with dual sinks, separate tub & shower and walk-in closet. Den/office room has a built in wood desk & book cases. Wonderful low maintenance backyard with a full length patio, putting green, hot tub and fire pit & bbq grill connected to gas. 2 new Carrier air conditioners installed in 2023. Tile and wood-look floors throughout - no carpet! 3 car garage with epoxy floors. Owned solar, APS bill averages under $125 per month!

17604 E Stacey Road Queen Creek, AZ 85142

$479,900
2 Beds
1.5 Baths
896 SqFt
Status Active
MLS # 6689185
Property Type Single Family Residence
Price Type --
With outstanding views of the San Tan Mountains from your extended front porch, this is the perfect little home in the desert! The flawlessly laid out, open concept floorplan maximizes the square footage. This home boasts 2 bedrooms and 1.5 baths. Master bath has an upgraded tile surround. Kitchen has been upgraded with tile backsplash, extended cabinets, and a large pantry. French doors in the master bedroom open to a covered patio, perfect for your morning coffee. The oversized garage can hold all your toys and there is additional storage space in the attic. The front-loading washer and dryer are located in the laundry nook within the garage and have additional storage cabinets. The large covered back porch and desert landscaped backyard is perfect for entertaining and is big enough for for a pool. This home is 2 years old and has been perfectly maintained. Washer/Dryer/Refrigerator Convey. With no HOA, this is the perfect starter/retirement home.

44088 W Palo Abeto Drive Maricopa, AZ 85138

$479,900 - 4Br/4Ba -  for Sale in Palo Brea, Maricopa
Open House
$479,900
4 Beds
3.5 Baths
2,992 SqFt
Status Active
MLS # 6658934
Property Type Single Family Residence
Price Type --
This impressive single-story home spans 2,990 square feet and offers 4 bedrooms and 3.5 baths, complete with a refreshing pool! The family room boasts a cozy fireplace, while the formal dining area features elegant crown molding. In the kitchen, discover an island, ample cabinets, 42'' uppers, stainless steel appliances, and a convenient walk-in pantry. The owner's suite is a luxurious retreat with double sinks, executive height cabinets, a walk-in closet, walk-in shower, and a relaxing garden tub. The Jack-n-Jill bathroom features double sinks and a tub/shower combo. Step into the backyard to enjoy a pebbletec pool with a water feature, an extended patio with pavers, and a separate turf area - perfect for your furry friend!

7918 W Joedad Terrace Peoria, AZ 85382

$479,900 - 3Br/2Ba -  for Sale in Fletcher Heights Phase 1a, Peoria
Open House
$479,900
3 Beds
2 Baths
1,520 SqFt
Status Active
MLS # 6687954
Property Type Single Family Residence
Price Type --
Welcome home to your Fulton Home Indigo 3 bedroom, 2 bath floorplan in the heart of Peoria. This was Fulton Homes most popular floorplan for many years and for good reason. As you walk in to the home, the spacious living room with gas fireplace gives you the ''home'' feel. Your formal dining room is to the left while the breakfast nook is straight ahead with the large kitchen with breakfast bar being adjacent to that. The captivating vaulted ceilings with additional windows gives plenty of natural light which makes this home bright. The massive master bedroom has the bay wndw option for even more room. Don't worry about closet space as the MB has a huge walk in closet. Both front and back yards are beautifully landscaped with mature fruit trees, built in BBQ, and a grassy area w/sprinklers

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