What Is a Home Warranty, and Do I Really Need One

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What Is a Home Warranty, and Do I Really Need One

Worried You Need 20% Down? Here’s the Real Deal.

If you’ve heard that you have to put 20% down to buy a home, you’re not alone—and you’re also not quite right. The idea of needing a huge pile of cash stops a lot of people from even trying. But the truth is, there are flexible, first-time-friendly options out there—and we’re here to break them down.

Here are 3 things you really need to know about down payments.

1. A Home Warranty Covers Systems That Wear Out Over Time

Unlike homeowner’s insurance, which covers things like fire or weather damage, a home warranty covers functional items inside your home. That includes:

  • Heating and cooling systems (HVAC)
  • Plumbing and electrical systems
  • Major appliances like your fridge, oven, or dishwasher

If one of these breaks down due to normal wear and tear, the warranty company helps pay for repair or replacement—saving you from unexpected costs.

2. It’s Different From Homeowner’s Insurance

Think of it this way: insurance protects your home from sudden events, while a warranty protects you from day-to-day breakdowns. You’ll still pay a service fee when something goes wrong (usually $75–$125 per visit), but it can help offset much larger repair bills—especially during your first year of homeownership.

3. A Home Warranty Can Be Worth It—In the Right Situation

If you’re buying a pre-owned or older home, a home warranty can be a smart short-term safety net. It’s also great if you’re not quite ready to take on unexpected repair costs. Just make sure to read the fine print—coverage varies, and not every policy includes every appliance or repair.

Want Help Deciding if a Home Warranty Is Right for You?

📘 Download our free “First-Time Buyer Game Plan” eBook — includes a full breakdown of home warranty vs. insurance
💬 Chat live now with our team to ask about warranty options in your area
📞 Schedule a call and we’ll walk you through your home’s age, systems, and whether a warranty fits your plan

At Stairway Mortgage, we help you protect more than just your purchase—
we help you protect your peace of mind.

Ready to Take Your First Step?

Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.

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Got a Few Questions First?

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