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.

Click Here to See What Your Home is Worth

2016 N Mcallister Avenue Tempe, AZ 85288

$484,900
3 Beds
2 Baths
1,547 SqFt
Status Active
MLS # 6673485
Property Type Single Family Residence
Price Type --
Indulge in the perfect blend of modern convenience and classic charm in this inviting 3-bedroom home, complete with a family room and bonus room, nestled in a community without the constraints of an HOA. Revel in the warmth of updated wood flooring that graces the interior, complemented by a kitchen transformation in 2019. A newer roof and HVAC system speak to the meticulous care and thoughtful upgrades this home has received. Embrace the beauty of natural light through sunscreen and dual-pane windows and the practicality of an RV gate adds to the appeal. Enclosed by block fencing, the backyard becomes a private retreat. This residence is not just a home; it's a testament to thoughtful updates, no HOA restrictions, and a lifestyle that seamlessly blends comfort and style!

8331 W Palmaire Avenue Glendale, AZ 85305

$484,900
3 Beds
2 Baths
1,787 SqFt
Status Active
MLS # 6683629
Property Type Single Family Residence
Price Type --
Discover this inviting 3-bed, 2-bath home in the sought-after gated community of Positano. Enjoy a spacious primary bedroom with a walk-in closet and large shower. The den/office adds flexibility. The great room opens to a kitchen with granite countertops and stainless steel appliances. Neutral tones and wood tile floors create a cozy atmosphere. Outside, an extended patio overlooks the low-maintenance backyard. Community perks include a park/playground. Minutes from the 101 Loop freeway, State Farm Stadium, and the vibrant Westgate Entertainment District. Exciting developments await nearby. Don't miss out!

1250 N Abbey Lane Chandler, AZ 85226

$484,900
2 Beds
2.5 Baths
1,956 SqFt
Status Active
MLS # 6681966
Property Type Townhouse
Price Type --
BONUS BUYER INCENTIVE: SELLER to prepay 18 MONTHS of HOA dues on behalf of buyer! Welcome to the epitome of modern living at Rhythm, a gated community designed for resort-style luxury. Step into this impeccable move-in-ready condo boasting 2 bedrooms plus a loft and 2.5 baths. Upon entry, you're greeted by an expansive open great room seamlessly blending the kitchen, dining, and family areas. The kitchen is a chef's dream with its spacious island, corner window, and sleek stainless steel appliances. Entertain effortlessly in the family room, equipped with surround sound and offering access to one of two balconies, perfect for enjoying your morning coffee or evening breeze. Upstairs, discover a versatile loft area leading to the second balcony, strategically dividing the master suite from the second bedroom and bathroom. Your two-car garage boasts epoxy floors, adding a touch of sophistication to your parking space. Indulge in the community's lavish amenities, including lap and additional pools, a splash pad, full gym, basketball court, and outdoor entertainment areas featuring dining spaces, lounging areas, BBQs, fire pits, and TVs. Plus, there's even a dedicated dog park for your furry friends to enjoy. Convenience meets luxury with this prime location offering swift access to top-notch restaurants, shopping destinations, and major freeways. Experience the ultimate in resort-style livingwelcome home!

1057 S Spur -- Mesa, AZ 85204

$484,900
3 Beds
2 Baths
1,338 SqFt
Status Active
MLS # 6695874
Property Type Single Family Residence
Price Type --
WOW! Get this beautifully remodeled home that is in the best location in Mesa. If you haven't been to McAfee Place, then you don't know what you're missing out on. Everything is super-close to this home, yet the neighborhood is so quiet and peaceful. Aside from the perfect location, this home feels like a brand new home! As soon as you walk in the front door you will notice the tastefully appointed kitchen which opens to the living room. The home was masterfully updated to include almost everything like the new kitchen, bathrooms, newly re-surfaced pebble tech pool, and so much more. Your new owners will love the OWNED solar system that comes with the house. Come take a look at this lovely home before it's gone!

53210 N Markham Pass Pass Seligman, AZ 86337

$484,800
3 Beds
2 Baths
1,568 SqFt
Status Active
MLS # 6669805
Property Type Manufactured Home
Price Type --
Custom Castlebrook Horse barn 40x60 w 14' tall center doors and custom doors on other entries, on 38 acres of grass. 4 run out stalls. This horse property has a very updated 1589sq ft Cavco home, with a brand new roof in 2022, new pex pipping in 2013, wood stove with rock surround. The property is fenced and cross fenced and is nearly level and grass from corner to corner with the center of the property heavy with trees. The home is not visible from the exterior of the property. There are two pastures already fenced and very pretty with white rail fencing. The round pen will stay. The property has 5000' of water storage on site. It is currently serviced by water haul but wells are possible in this area - they are expensive. The water tank that slides into a standard truck be will remain so you can water haul yourself if you desire. The utility room is a very well insulated Weather King 10x12 shed. The 10x16 Weather King shed is set up as a Workshop. If that isn't enough storage there is also a 20' shipping container that is used for a toy garage. Property is powered by a 24v offgrid system with 12batteries and a 14kW automatic backup propane generator. Propane tank is leased from Suburban Propane. The home is set on a stemwall and is affixed to the property. All appliances are included including the 6sqft deep freeze. The wood flooring throughout is no longer pristine so the seller is offering a flooring rebate back at closing. POA Roads and Two Subdivision Community Wells - are the Only function of the POA. The Two Subdivsion Community Wells you can draw 4,000 gallon a month in use of your truck, tanks and generator. There is 5,000 water storage on parcel. You can also drill a Well on parcel, or have water delivered at approx. $125.00 Delivered for 2,000 gallons. You can also pick up water yourself in Seligman Town by Train Tracks self-pay 1,300 gallons is $16.00. Roads and Wells is the only function of the POA.

11987 S 172nd Avenue Goodyear, AZ 85338

$484,000
4 Beds
2 Baths
1,943 SqFt
Status Active
MLS # 6702157
Property Type Single Family Residence
Price Type --
Welcome to this newer home built in 2023 and located in the desirable Acacia Foothills at Estrella Mountain Ranch, where you can indulge in a resort-style life year-round! This charming home boasts 4 bedrooms and 2 bathrooms, with upgrades inside and out, including a decorative front door, a paver stone driveway, elegant window shutters, wood-look tile, remote-controlled ceiling fans, and stylish pendant lights that bring together the cohesive aesthetic of the home. The great room layout boasts a well-designed gourmet kitchen, featuring stainless steel wall appliances, a stylish gas cooktop paired with an elegant vent hood, white cabinetry with crown molding, a sophisticated herringbone-patterned tile backsplash, and a generously sized kitchen island complete with a breakfast bar. The great room has shutters and plenty of natural light with the sliding door that opens to a large backyard and a covered patio. The primary suite is spacious with a lavish ensuite bathroom featuring a separate tub and shower, dual sink vanity, and a walk-in closet. The remaining bedrooms are move-in ready with shutters and ceiling fans! Do not miss out on this comfortable and well-maintained home. Nestled amidst the breathtaking Estrella Mountains, Estrella Mountain Ranch offers residents an unparalleled lifestyle enriched with a wide variety of amenities. With over 65 miles of hiking and biking trails catering to all levels of adventure, outdoor enthusiasts can explore the natural beauty of the surroundings. Come indulge in two luxurious clubs, Starpointe and Presidio, complete with resort-style pools, state-of-the-art fitness centers, and various sports courts, ensuring endless opportunities for relaxation and recreation. Golf lovers will revel in the championship experience offered by the Golf Club of Estrella, designed by Nicklaus Design and managed by Troon, while the Players Grill and Patio provide the perfect setting to unwind with panoramic views. Additionally, residents can relax at the Yacht Club on the North Lake offering complimentary boat use, palm tree-lined shores, and captivating mountain vistas in this extraordinary experience. Not only plentiful in daily amenities, this community also offers its residents a vibrant calendar of events including community farmers markets, movie and food truck nights, wine sipping and paint nights, and much more! Estrella Mountain Ranch truly epitomizes the epitome of modern living intertwined with natural splendor and community camaraderie.

10838 W Reef Circle Arizona City, AZ 85123

$484,000
5 Beds
3 Baths
3,995 SqFt
Status Active
MLS # 6632698
Property Type Single Family Residence
Price Type --
Remarkable custom-built Lakefront home with panoramic views! Nestled on a cul-de-sac offering 5 beds, 3 baths, and a 3-car garage. You'll love the fabulous interior showcasing a welcoming living & dining room combo and an inviting family room paired with a fireplace & media niche, that seamlessly connects to the kitchen. Entertainment-ready, this gem provides surround sound & a wet bar! Abundant natural light, 10ft ceilings, excellent stairway banister, two-tone paint, & tasteful flooring enhance the overall ambiance. The large kitchen boasts built-in appliances, granite counters & backsplash, recessed lighting, a built-in desk, wood cabinetry, and an island w/breakfast bar. One bedroom downstairs! Head upstairs to find a cozy loft & 4 bedrooms. Grand main bedroom will surely impress you! Featuring a media center w/fireplace, wet bar, balcony access, and a sitting room that can be an office as well. Its ensuite includes dual vanities, jetted tub, snail shower, & a walk-in closet. Laundry room with attached cabinetry & sink for your convenience. Outside, your fantastic retreat awaits in the backyard! Natural grass, covered patio, and space for enjoying BBQ complete the picture. PLUS! Take advantage of the private boat dock for your water adventures. This value won't disappoint!

15427 N 56th Avenue Glendale, AZ 85306

$484,000
4 Beds
2 Baths
1,980 SqFt
Status Active
MLS # 6641672
Property Type Single Family Residence
Price Type --
Welcome to this stunning property with a natural color palette. The kitchen boasts a nice backsplash, adding a touch of elegance to the heart of the home. The master bedroom features a walk-in closet. Additionally, this property offers other rooms for flexible living space, allowing you to configure the layout to suit your needs. The primary bathroom is equipped with double sinks and good under sink storage. Step outside and discover a fenced-in backyard, providing security and privacy. The private in-ground pool offers the perfect retreat for those warm summer days, while the covered sitting area allows for an idyllic space to relax and unwind. Other features include fresh interior paint and partial flooring replacement in some areas.

2650 S Los Altos Drive Chandler, AZ 85286

$484,000
3 Beds
2.5 Baths
1,509 SqFt
Status Active
MLS # 6649175
Property Type Single Family Residence
Price Type --
Wow! This turnkey 2-level residence with a spacious front yard, RV gate, & a 2-car garage is now on the market! Vaulted ceilings, fresh palette, lovely light fixtures, tile flooring, bountiful natural light, & a generous-sized living room perfect for receiving guests await you. Impeccable eat-in kitchen showcases a plethora of beautiful wood cabinets, recessed lighting, mosaic tile backsplash, a breakfast bar, an island, ample counter space, & sliding glass doors to the back. Continue upstairs to find the oversized main retreat boasting gorgeous wood-look flooring and an immaculate ensuite w/dual sinks & a carpeted walk-in closet. You'll love hosting fun gatherings in the vast backyard w/a covered patio, pavers, & a matured shade tree! Get an up-close look today.

103 E Glade Lane Payson, AZ 85541

$484,000
4 Beds
3 Baths
2,137 SqFt
Status Active
MLS # 6686875
Property Type Single Family Residence
Price Type --
Nestled in a serene locale, this spacious home boasts rare C-2 zoning, offering a unique opportunity for a home-based business. With a charming family room and flexible office spaces or a cozy library, it provides ample room for both personal and professional pursuits. The gourmet kitchen overlooks a meticulously landscaped backyard oasis, and mature greenery, fostering an inspiring atmosphere for work and relaxation. Upstairs, the luxurious master bedroom includes an attached private office and balcony, providing tranquil views of the lush surroundings. Convenient RV parking and multiple parking areas ensure hassle-free access for clients and guests. With its blend of functionality, elegance, and prime location.

15611 W Shangri La Road Surprise, AZ 85379

$484,000
4 Beds
2 Baths
2,118 SqFt
Status Active
MLS # 6688003
Property Type Single Family Residence
Price Type --
Greer Ranch & Nestled on a corner lot, it features 4 beds, 2 baths w/ teen room/flex area & 2-car garage, Fabulous interior showcases a large living room, plantation shutters, abundant natural light, vaulted ceilings that add to the airy feel. The impressive eat-in kitchen boasts SS appliances, granite counters, recessed lighting, a pantry, ample white cabinetry, & an island w/breakfast bar. Versatile den/teen rm/office. Built-in desk. Ideal for an In-Law suite. Spacious main bedroom offers a barn door that opens to the ensuite with dual sinks, sizable shower, & a walk-in closet. 4th bedroom, with mini split, was formerly a garage. Enjoy the fantastic backyard with a covered patio, grassy area, firepit, & a sparkling pool! VA Assumable loan at 4.125% pool pump 2023.

15638 W Kendall Street Goodyear, AZ 85338

$483,990
5 Beds
3 Baths
2,685 SqFt
Status Active
MLS # 6702285
Property Type Single Family Residence
Price Type --
Below Market Financing Available!!!!!!!!!!! A two-story home, this space features an open design on the first floor that combines the dining room, Great Room and kitchen as an ideal entertainment area. An attached patio is perfect for outdoor experiences, while a separate bedroom is great for guests. Upstairs is an owner's suite with two walk-in closets, along with three additional bedrooms. Photos are renderings of a model home, not the actual home.

Leave a Reply

Your email address will not be published.