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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30458 W Amelia Avenue Buckeye, AZ 85396

$483,900

5 Beds

3 Baths

3,923 SqFt

Status Active

MLS # 6655689

Property Type Single Family Residence

Price Type --

Upgraded kitchen, 42in cabinets, granite countertops, stainless steel appliances, built in desk. Eat in kitchen, island bar, and formal dining room. Step down into your carpeted living room and enjoy the large open space.

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28436 N 123rd Lane Peoria, AZ 85383

$483,500

2 Beds

2 Baths

1,399 SqFt

Status Active

MLS # 6687157

Property Type Single Family Residence

Price Type --

This 1399sqft RIVAS GEM is offered TURNKEY with all furniture and furnishings included. It welcomes you on a large lush landscaped lot with lots of privacy. The newly painted walls invite you to enjoy this 2BRm, 2Bath home where the main areas are all interactive, highlighted by a robust fireplace. The bedrooms shimmer with beautiful wood floors and each bedroom has the expanded option. The large covered rear patio, done in Mexican tiles, ads a touch of olde world charm, and the extended garage gives that needed extra space. All this is located within the award winning 55+ Community of Trilogy at Vistancia, that offers resort style living at its finest.

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18439 W Villa Hermosa Lane Surprise, AZ 85387

$483,155

5 Beds

3 Baths

2,551 SqFt

Status Active

MLS # 6686998

Property Type Single Family Residence

Price Type --

Completed New Build Home. Below Market Interest Rate Financing Available. 5 Bedrooms, 3 Baths, Study, & Flex Room, 2 Car Garage with 8ft Garage Door. VERY Open Floor Plan. Kitchen Island and walk in Pantry. Tile throughout, carpet in bedrooms only. Patio on back of home. This home is located in North Copper Canyon that offers a community pool and many other amenities.

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4154 E Alamo Street San Tan Valley, AZ 85140

$483,000

3 Beds

2 Baths

1,695 SqFt

Status Active

MLS # 6683372

Property Type Single Family Residence

Price Type --

Welcome to luxury living at its finest! This stunning home boasts impeccable condition and exquisite features, including a heated pool and spa with state-of-the-art technology for ultimate relaxation and convenience.Enjoy breathtaking peekaboo views of the majestic Superstition Mountains right from your backyard oasis. With neutral tile flooring throughout and plush low pile carpeting in the bedrooms, comfort and style blend seamlessly in every corner of this home.Entertain with ease in the spacious kitchen, equipped with NEW SS appliances and ample workspace for culinary creativity. Whether hosting intimate gatherings or lively soirées, this kitchen is sure to impress.Convenience meets modernity with a brand new garage door opener featuring Wi-Fi capability, ensuring effortles

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9139 W Gelding Drive Peoria, AZ 85381

$483,000

4 Beds

2.5 Baths

2,176 SqFt

Status Active

MLS # 6668188

Property Type Single Family Residence

Price Type --

Beautiful two-story home in great Peoria neighborhood! This home features a spacious living and dining room and kitchen with granite counters and stainless steel appliances. The great room has a stunning banister that leads to the second level. The primary bedroom features a large closet and en-suite bath with a separate tub and shower and dual sinks. The backyard features a sparkling pool, covered patio, and grassy area. Located close to Rio Vista park, shopping, restaurants, and a short drive to Park West!

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2302 N Central Avenue Phoenix, AZ 85004

$483,000

2 Beds

2 Baths

1,386 SqFt

Status Active

MLS # 6673577

Property Type Apartment

Price Type --

This meticulous Midtown penthouse is a rare find, where quality, luxury and style intersect. Please check out our 360° virtual tour, floor plans and social media video tour in the photos. You will soon discover this fresh 2021 renovation includes many upgrades like appliances (GE Cafe), quality cabinetry, granite countertops, additional storage, energy efficient 3M window film on the dual pane Anderson windows, remote controlled decorative & blackout window treatments, luxury vinyl plank flooring throughout, custom closets, wet bar with mini fridge & microwave and stellar views from the 6th and 7th floor balconies overlooking the Willo & Fairview Historic Districts all the way to the Colosseum at the Fairgrounds! Two underground garage adjacent parking spaces allow you to have two vehicles or to be decadent and park in the middle of both spaces! The community heated pool & hot tub, sauna and fitness center are a continuation of the luxury in this community. This is the ideal Midtown location right on the light rail stop near the museums, restaurants, etc. where you can walk, bicycle, ride light rail or drive with easy access to everything everywhere! Come see the meticulous and luxury in this penthouse for yourself!

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11998 S 173rd Lane Goodyear, AZ 85338

$482,990

3 Beds

2 Baths

1,841 SqFt

Status Active

MLS # 6703257

Property Type Single Family Residence

Price Type --

Situated on a homesite facing sweeping views of the Estrella Mountains. This beautiful home boasts 3 large bedrooms and a private enclosed study. The open-concept kitchen includes ample countertop space, built in appliances, designer backsplash, a center island, and an expansive walk-in pantry. Host your next dinner party in the open dining and great room then transition to the covered back patio for dessert and a nightcap. Additional highlights include wood like tile, 8' interior doors, 3 1/2 baseboards throughout, 8' garage door and more! Located within the Estrella masterplan with 2 state-of-the-art Residents Clubs including fitness centers and pools, Starsplash Water Park, and a community lake with activities including boat rentals.

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11792 S 173rd Lane Goodyear, AZ 85338

$482,990

3 Beds

2 Baths

1,841 SqFt

Status Active

MLS # 6703322

Property Type Single Family Residence

Price Type --

Situated on a homesite facing sweeping views of the Estrella Mountains. This beautiful home boasts 3 large bedrooms and a private enclosed study. The open-concept kitchen includes ample countertop space, built in appliances, designer backsplash, a center island, and an expansive walk-in pantry. Host your next dinner party in the open dining and great room then transition to the covered back patio for dessert and a nightcap. Additional highlights include wood like tile, 8' interior doors, granite kitchen countertops, soft water loop and so much more! Located within the Estrella masterplan with 2 state-of-the-art Residents Clubs including fitness centers and pools, Starsplash Water Park, and a community lake with activities including boat rentals.

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701 S Del Rancho -- Mesa, AZ 85208

$482,705

3 Beds

2.5 Baths

1,784 SqFt

Status Active

MLS # 6568826

Property Type Single Family Residence

Price Type --

$22,000 in Builder Incentives (must use Preferred Lender) for Buyer to use on this NOW COMPLETED inventory home! This 3 bedroom, 2.5 bath home features a Great Room concept. Beautiful 42'' Ash in color shaker style cabinets in kitchen with a large island.....perfect for entertaining! 12X24 tile flooring entire first level! Granite Countertops. Primary bedroom has TWO separate walk in closets! Diamond Court, built by Newmark Homes, is an 18 home community nestled in a prime location in Mesa with lots of new retail/restaurants close by!

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13043 W Wildwood Drive Sun City West, AZ 85375

$482,500

3 Beds

2 Baths

2,396 SqFt

Status Active

MLS # 6653857

Property Type Single Family Residence

Price Type --

Seller offering closing cost credit or rate buy down! Stunning completely remodeled 3 bedroom home on a large fenced corner lot in the heart of Sun City West. Open floor plan features new wood plank flooring, windows, interior/exterior doors, interior/exterior paint, and trim/hardware/lighting throughout. Expanded kitchen with new white shaker soft close cabinetry, large island with quartz ''waterfall'' edges, stainless appliances, and marble backsplash. Spacious primary suite and luxurious private bath with extended walk-in shower, dual sinks, new cabinets/tile, and 2 closets. Secondary bedrooms are adjacent to hall bath also featuring a walk-in shower and new finishes. Large finished utility room off kitchen would make a great craft room, office space, or storage. See upgrade list.

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15857 W Bronco Trail Surprise, AZ 85387

New

$481,990

3 Beds

2.5 Baths

2,052 SqFt

Status Active

MLS # 6704165

Property Type Single Family Residence

Price Type --

CLOSE NOW! THIS BEAUTIFUL SINGLE STORY HOME WITH 3 BEDROOMS, 2 1/2 BATH AND A 3 CAR GARAGE IS GREAT FOR STORING YOUR BOAT OR TRAILER, THE HOME IS LOADED WITH UPGRADES TO ENHANCE ITS BEAUTY, IN THE KITCHEN THERE ARE PENDANT LIGHTS POSITIONED OVER THE OVERSIZED ISLAND PROVIDING A STYLISH AND WELL-LIT SPACE FOR MEAL PREPARATION AND DINING, THE FLOORING IS ALSO UPGRADED WITH 12 X 24 INCH TILE LENDING A MODERN TOUCH, IT HAS A GAS RANGE ENSURING EFFICIENT AND PRECISE COOKING, THE STAINLESS STEEL FINISH ADDS A SLEEK AND CONTEMPORARY LOOK TO THE KITCHEN, ALSO UPGRADED BACKSPLASH, BLINDS ARE INSTALLED THROUGHOUT THE HOME ALLOWING FOR PRIVACY AND CONTROL OF NATURAL LIGHT, THE GARAGE DOOR OPENER PROVIDES EASY ACCESS TO THE THREE CAR GARAGE, SMART HOME AND ENERGY STAR CERTIFIED, WOW!

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4183 E Reynolds Drive San Tan Valley, AZ 85143

$481,990

5 Beds

4.5 Baths

3,131 SqFt

Status Active

MLS # 6681032

Property Type Single Family Residence

Price Type --

Beautiful NEW Home in in the highly desirable San Tan Valley area, close to major cities. Overlooking scenic desert views. Featuring countless upgrades such as 9' ceilings, Shaw Ceramic Tile Floors, Granite countertops in the kitchen. Whirlpool Stainless steel appliances and white cabinetry. Energy-efficient features throughout, Wi-Fi & programmable thermostat, and electric range. Spacious walk-in closet in owner's suite! Front yard landscaping with irrigation included and generous covered patio in the backyard. Minutes from hiking trails and scenic mountain views! Fantastic proposed amenities such as community parks, football fields, soccer fields, baseball/softball fields, BBQ grills, picnic area, Shaded ramada areas, benches, play structures, sand Volleyball, tennis courts,and several designated trails! Located near Queen Creek, highly rated schools, shopping, and dining! Surrounded by open Sonoran Desert habitat.

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