Get All the Facts about PMI

Get All the Facts about PMI | Simplifying The Market

When it comes to buying a home, whether it is your first time or your fifth, it is always important to know all the facts. With the large number of mortgage programs available that allow buyers to purchase a home with a down payment below 20%, you can never have too much information about Private Mortgage Insurance (PMI).

What is PMI?

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:

“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.” 

According to the National Association of Realtors, the average down payment for all buyers last year was 10%. For first-time buyers, that number dropped to 6%, while repeat buyers put down 14% (no doubt aided by the sale of their home). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.

Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:

Get All the Facts about PMI | Simplifying The Market

The larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Bottom Line

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and to help you make the best decision for you and your family.  Give me a call – J.P. Cook – 602-320-4253.

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26905 N 98th Way Scottsdale, AZ 85262

$7,000,000
4 Beds
7 Baths
8,070 SqFt
Status Active
MLS # 6810913
Property Type Single Family Residence
Price Type --
Exquisitely remodeled custom estate in North Scottsdale's exclusive guard gated Estancia is remarkable in every way. Exceptional homesite perfectly designed to capture panoramic postcard worthy mountain, city and golf views while perfectly nestled hillside with Pinnacle Peak Mountain and Sonoran Desert as your backdrop. Enjoy layered mountain range silhouettes overlooking the 6th, 7th and 8th holes of the renowned Estancia golf course. Extraordinary outdoor living spaces with showstopping first impression - negative edge pool and spa, turf and paver lounge area, covered patio, generous hardscaped area for entertaining and lounging, and built in BBQ grill. Seamless indoor-outdoor AZ living with spacious living areas with soaring ceilings boasting breathtaking panoramic views across the front of the home of multiple mountain ranges, city lights and lush golf course. Grand living area with horseshoe wet bar, expansive gourmet eat-in kitchen and family room all open to front outdoor living and capture spectacular views. Functionality meets personality in this stunning kitchen and oversized eat-in island with Quartzite countertops, stylish accent backsplash and pendant lights, with Subzero fridge, freezer and wine fridge, Wolf gas range with 6 burners, griddle and double oven, Wolf built-in microwave, Ruvati workstation sink, and convenient pantry to garage dumbwaiter. Full of character and unique features, showcasing a black iron glass elevator in the heart of the home, a private wine tasting room, and abundant windows throughout in just the right places to capture all the views. Designer finishes throughout including wide plank white oak flooring, chic Lutron lighting, double glass/iron entry doors, marble and tile backsplashes, textured wallpapered accents with savvy Control 4 system. Expansive primary suite with sitting and fireplace, opens to balcony with access to outdoor living and pool, two closets with built-in wardrobes. Recreational den with wet bar and fireplace opens to back courtyard with sitting area and fireplace. Stunning view balcony wraps around the home with multiple entries and access to courtyard backing to Pinnacle Peak surrounded by natural Sonoran Desert boulders and landscape. Multiple charming outdoor spaces with fireplaces to escape and soak in the sunrises or sunsets. Meticulous details, for the most discerning homebuyer.

5314 E Calle Del Norte -- Phoenix, AZ 85018

$7,000,000
5 Beds
5.5 Baths
6,858 SqFt
Status Active
MLS # 6807373
Property Type Single Family Residence
Price Type --
This custom Arcadia estate sits on a .8-acre lot with breathtaking Camelback Mountain views. Remodeled by Mcintyre Development and turnkey with 5 bedrooms, 5.5 bathrooms, a guest house, office, media room, and exercise room. The two-story home showcases wood flooring, high ceilings, gas fireplaces, and natural light from French windows and doors. The chef's kitchen boasts high-end appliances, gold finishes, a Butler's pantry with multiple ovens, and a large island. The primary suite offers a private backyard entry, gas fireplace, dual vanities, soaking tub, oversized shower, and walk-in closet. The backyard is perfect for entertaining, with a guest house, custom pool and spa, covered patio with built-in BBQ, and a grass yard with citrus trees. Enjoy biking or walking along the canal, and be minutes away from Phoenix's top resorts, golf courses, hiking, dining, and shopping.

5330 N Palo Cristi Road Paradise Valley, AZ 85253

$6,999,999
5 Beds
6 Baths
8,311 SqFt
Status Active
MLS # 6773512
Property Type Single Family Residence
Price Type --
This private gated estate sits on nearly two acres of lush, manicured grounds in a highly coveted Paradise Valley neighborhood. Imagine a home that perfectly combines luxurious living, high end entertaining opportunities and loads of fun for all generations. Enjoy cooking in the impressive kitchen with more than enough room to prep, serve and enjoy, work at home from the private office, end the day with a steam and cold plunge, or work on your golf game; all options are on the table in this unique residence built for family fun. With 8,331 square feet of living space, 5 oversized bedrooms, 6 beautiful bathrooms, a golf simulator and putting green, sport court/pickle ball court, heated pool and spa, and huge yard with fabulous seating vignettes meandering throughout

9114 N 55th Street Paradise Valley, AZ 85253

$6,999,888
6 Beds
6 Baths
6,220 SqFt
Status Active
MLS # 6830775
Property Type Single Family Residence
Price Type --
Located in the Highly Desirable Camelback Country Estates, sits this health & wellness centered remodeled estate in Paradise Valley. This modern santa barbara 6Bed/6Bath property offers Organically maintained grounds, organic food gardens and orchard, salt water pool with UV and CO2 systems, plus whole home water filtration. With a 4Bed/5Bath main house + 2 bedrooms/1Bath newly built guest house this home was done with health in mind. The incredible guest house also offers a rooftop view deck, covered patio with BBQ & heaters and kitchen. The new natural backyard paradise features a pool and spa with a Baja shelf, splash pad, sport court, putting green, playground, garden beds and lush grounds surrounding the entire property. The main house has a stunning light and bright kitchen with double islands and a family room with vaulted ceilings, fireplace and wet bar. The incredibly spacious primary suite with fireplace showcases a beautiful spa-like bathroom with double vanities and makeup area, large closet and stunning tub and shower that leads out to a sauna and outdoor shower.

6040 E Lafayette Boulevard Scottsdale, AZ 85251

$6,999,000
5 Beds
5.5 Baths
5,949 SqFt
Status Active
MLS # 6799077
Property Type Single Family Residence
Price Type --
Custom Arcadia Proper new build sitting on a north facing corner lot with stunning Camelback mountain views. No expense was spared on this high end, fully furnished estate designed by Evon Fig Interiors. A Fig House Project Built to perfection with rich colors, earthy marbles, Roman clay walls, Waterstone plumbing, Kelly Wearstler wallpaper, and elusive finishes not even found in 20 million-dollar homes. Greeted with high ceilings, French oak flooring, and large windows and sliding doors to provide natural lighting in the formal dining, great room with gas fireplace, and kitchen. Wolf and Sub-Zero appliances included in the chef's kitchen with Calacatta marble, rift sewn oak cabinets, Shaw sinks and catering kitchen/pantry with beverage drawers, built-in coffee maker, microwave, and dishwasher. Primary suite includes custom marble fireplace mantle, dual closets, sinks, and enclosed toilets, concrete tub, and oversized walk-in shower. Entertain family and friends in the backyard's pool and spa with attached pool bungalow, built-in BBQ station, and private mountain views and artificial turf. Additional home features include Control4 Smart Home to control lighting, pool, and landscaping, dog run and doggy door, 3-car garage with EV charger, office/den, and 4 additional ensuite bedrooms with walk-in closets. Walk or bike on the canal or drive minutes to reach Phoenix's top resorts, golf, hiking, dining, and shopping.

3699 S Woodland Hills Drive Flagstaff, AZ 86005

$6,995,000
5 Beds
5.5 Baths
5,900 SqFt
Status Active
MLS # 6723410
Property Type Single Family Residence
Price Type --
Introducing the first one-of-a-kind custom residence from The Ranch Mine and Two Hawks Design and Development in the highly desirable Pine Canyon community. This extraordinary mountain contemporary estate can be found on the 5th hole of the renowned Jay Morrish golf course, with breathtaking golf and mountain views. With over 5,900 sf of living space this home features 5 beds, 5.5 baths, 2 bonus rooms and a 3 car garage. This custom residence showcases a truly thought-out floor plan with exceptional privacy and a functional layout, perfect for enternaning family and friends! The home's outdoor living is truly spectacular, enjoy breathtaking views and majestic sunsets from multiple patios. Optional 1,500 SF of bonus basement space available to build out (not included in the current price).

10755 E Stoney Lane Scottsdale, AZ 85262

$6,995,000
4 Beds
6 Baths
5,812 SqFt
Status Active
MLS # 6784219
Property Type Single Family Residence
Price Type --
Golf Membership Available- Contemporary Desert Oasis with Unmatched Panoramic Views nestled within Desert Mountain's most coveted enclave, the prestigious lakeside ''Gold Coast''. This modern masterpiece offers elevated Southern to Northwestern panoramic views, capturing the beauty of mountain ranges, vibrant sunsets, serene water features, golf courses, and vast starry night skies. Originally built in 1992 and impeccably remodeled by renowned Manship Homes from 2015 to 2019, this home was further enhanced in 2022 with the addition of a stylish guest casita or private office/den. The home's contemporary architecture is showcased through clean lines, sharp angles, and a masterful use of stone, wood, metal, and glass, creating a perfect balance of style and functionality. The open floor pla flows seamlessly, starting with the Great Room featuring a floor-level fireplace, an intimate office alcove, and a spacious dining area. At the heart of the home lies the chef's kitchen, bathed in natural light from six skylights. This kitchen is a haven for entertaining, featuring a generous island with bar seating, a temperature-controlled 240-bottle wine wall, and an adjacent den complete with a wet bar and cozy floor-level fireplace. Both living areas showcase expansive floor-to-ceiling sliding doors that invite the outdoors in, creating a harmonious blend of indoor and outdoor living. The split-floor plan ensures privacy for the luxurious primary suite, which impresses with a double-door entry, a dropped and illuminated ceiling detail, and a see-through fireplace connecting to the spa-inspired bath. The suite also includes a glass slider wall system opening to the patio. The spa bath features an oversized soaking tub with fireplace views, a picture window, double vanity with integrated sinks, a steam shower, and a spacious designer closet. From the primary suite, access the rooftop deck directly for a tranquil escape with unmatched views of the surrounding landscape. On the opposite side of the home, two beautifully designed guest ensuites offer serenity, each with double-door entries and modern ensuite baths featuring linear vanities and floor-level walk-in showers. One guest suite also enjoys patio access, enhancing the guest experience. Two additional powder baths, each with floating vanities, add convenience and elegance to the home's layout. The outdoor living space is a stunning visual showcase of Southwestern beauty, featuring a negative-edge pool with an in-pool spa, terraced hillside patios with conversation areas, sunning decks, an outdoor grilling station, and alfresco dining areas. A ground-level linear firepit and a walk-in snail outdoor shower complete the exquisite exterior amenities. The private entrance casita is a world of its own, equipped with a full kitchen, including bar seating with own refrigerator, freezer, microwave, cooktop, dishwasher, and laundry facilitiesmaking it ideal for long-term guests or a private office suite with living space and separate bedroom. Throughout the home, attention to detail is evident with custom contemporary slab cabinetry, oak plank and stone flooring, slab stone countertops with 4 mitered edges, Smart Home technology and a whole-home entertainment system elevate this property to the pinnacle of modern living. Positioned mid-mountain, this home offers easy access to all of Desert Mountain's world-class amenities, including seven golf courses, seven clubhouses, tennis and pickleball courts, over 20 miles of hiking trails bordering the Tonto National Forest, and a short distance to the back gate for convenient access to nearby towns. Experience unparalleled desert living in this one-of-a-kind retreat, where luxury, nature, and modern design converge in Desert Mountain's most distinguished address.

5842 E Redwing Road Paradise Valley, AZ 85253

$6,995,000
5 Beds
5.5 Baths
8,306 SqFt
Status Active
MLS # 6692132
Property Type Single Family Residence
Price Type --
Incredible value now priced at $842/sq ft...impossible to replace at this price! Nestled between Mummy & Camelback mountains, this meticulously maintained estate showcases authentic Santa Barbara architecture and timeless design. Every detail created by skilled artisans, it features exquisite millwork and cabinetry - all crafted on site. Set in a prime PV location, it features a circular driveway, private gated entry courtyard with exposed terracotta roof tiles and brick columns..reminiscent of the famed Royal Palms Resort. The chef's kitchen boasts dual islands of butcher's block and Carrera marble atop beautiful cabinetry, with ample seating for 12 and spacious butler's pantry. The great room features hand-hewn trestle beams, stone fireplace, serving bar and wine room... ...which all flow into the central courtyard. The adjacent theater is spacious with room for 12. The primary suite features a coffered ceiling, sliding bookcase revealing a secret office, Cantera fireplace, a luxurious bath with dual vanity areas, custom tile, and two walk-in closets. The split floor plan includes three guest suites with en-suite baths and beautiful hand-painted tiles. The hand-painted domed ceilings in the formal dining room and nearby office complement the living room with its boxed barrel-domed ceiling and crystal chandeliers, offering stunning Camelback Mountain views. Discover the charming outdoor space with hand-tiled swimming pool, outdoor kitchen, inviting seating areas with mountain views and a full guest casita. Relax in the custom spa with cascading fountains from the pergola above. An oversized four-car garage with ample built-in cabinetry, native plants, fruit trees, and space for a pickleball court or putting green complete this pristine property.

34 Biltmore Estate Phoenix, AZ 85016

$6,995,000
6 Beds
7.5 Baths
8,994 SqFt
Status Active
MLS # 6790237
Property Type Single Family Residence
Price Type --
Stunning views of the golf course & Camelback Mtn from this gorgeous thoroughly remodeled home on the famed Biltmore Circle. Positioned between 2 fairways & surrounded by lush landscaping, this privately-gated estate offers quality painted brick & steel construction, a stone slate roof, copper fascia , a 7-car garage, sport court & a private pool area. The light-filled floor plan takes advantage of its location with views from every room & includes 6 en suite bedrooms, a den, formal living room, family room, a gym/art studio, wet bar, 4 fireplaces, 2 laundry areas & wine storage. Finishes include European Oak floors, vaulted plank & beam ceilings & built-in cabinets/shelving throughout. The open kitchen offers a Thermador 6-burner range, 2 dishwashers & a butler pantry. Gracious AZ living

4900 E Desert Fairways Drive Paradise Valley, AZ 85253

$6,990,000
5 Beds
5.5 Baths
7,333 SqFt
Status Active
MLS # 6821211
Property Type Single Family Residence
Price Type --
Welcome to a world of refined elegance and effortless luxury in the prestigious enclave of Desert Fairways Drive. Nestled between Camelback and Mummy mountain this extraordinary estate captures the essence of elevated living with unsurpassed privacy. As you approach this gated sanctuary, a stately driveway and lush, manicured landscaping set the stage for the grandeur within. Encompassing over 7,300 square feet, this meticulously designed residence blends timeless sophistication with modern comforts, offering an exceptional living experience. Step inside to soaring ceilings, expansive walls, glorious Travertine stone flooring and grand glass doors and windows, all executed with exquisite craftsmanship. Sunlight streams through the open-concept living spaces, *see more creating a warm and inviting ambiance that is equally suited for lavish entertaining and intimate gatherings. At the heart of the home, the gourmet kitchen is a chef's masterpiece, featuring top-tier appliances, custom cabinetry, and an oversized center islandperfect for hosting elegant dinner parties. The primary suite is a private sanctuary, complete with a spa-inspired ensuite bathroom, an expansive walk-in closet, full size state of the art gym and a secluded patio that invites you to unwind in the serene surroundings. Just steps away, the tranquil koi pond adds an element of Zen-like relaxation, with the gentle trickle of water providing a soothing private retreat. Beyond the interiors, the resort-style backyard is designed for both high end leisure and entertainment. Take a refreshing dip in the sparkling pool and spa, or perfect your game on the pickleball court. For added comfort and flexibility, this estate features a spacious, private casitaideal for hosting guests, extended family, or even a private home office. Thoughtfully designed with a full bedroom, ensuite bath, kitchenette, and a cozy living area, this separate retreat offers the perfect blend of luxury and privacy. Guests will enjoy their own tranquil escape while still being steps away from the estate's world-class amenities. Adding to the home's serene ambiance is a picturesque koi pond, a rare and peaceful retreat within the estate. Thoughtfully integrated into the lush landscape, this tranquil water feature provides a Zen-like atmosphere, allowing you to unwind and reconnect with nature. Whether listening to the soothing sounds of cascading water or admiring the graceful movement of the koi, this private sanctuary offers an unparalleled sense of peace and relaxation. Offering unmatched seclusion, luxury, and breathtaking views, this estate is a true masterpiece in Paradise Valley, Arizona's most desirable location.

6524 E Stallion Road Paradise Valley, AZ 85253

$6,990,000
4 Beds
6 Baths
5,466 SqFt
Status Active Under Contract
MLS # 6691277
Property Type Single Family Residence
Price Type --
Introducing Santa Fe Hacienda, an exquisitely restored and reimagined Nance masterpiece by Modern Nest situated on a generous 1-acre lot in the heart of Paradise Valley. This stunning residence showcases a captivating blend of Santa Fe-style design with luxurious modern and rustic accents throughout its expansive 5466 square feet and its 4 bedrooms and 6 bathrooms. Boasting an impressive main living area adorned with an oversized gas fireplace, two comfortable sitting areas, and a handcrafted wet bar with a limestone sink, and walk-in wine cellar, this home offers an unparalleled setting for both relaxation and entertainment. The elevated chef's kitchen is a true culinary haven, featuring reclaimed terracotta flooring, hand-hewn wood ceiling beams, impeccably designed cabinetry, high-end lighting fixtures, and top-of-the-line Wolf and Sub Zero appliances. The butler's pantry, just off the kitchen, offers additional storage paired with charming design and function. Adjacent to the kitchen, an elegant dining space awaits, complemented by picturesque windows that flood the room with natural light. The owners suite is a sanctuary unto itself, with a cozy fireplace, a private patio retreat, and an office with its own outdoor patio. The bath is a spa-like oasis, complete with a freestanding copper bathtub nestled near another fireplace, separate vanity areas, and a luxurious shower experience. The oversized closet is a masterpiece of design, featuring custom cabinetry, abundant storage, and ample natural light. A spacious media room, equipped with a convenient kitchenette, provides the perfect spot for casual gatherings and relaxation, while three additional bedrooms offer comfort and privacy, each with its own ensuite bath and outdoor patio access. The functional yet stunningly designed mudroom/laundry room boasts dual washers and dryers, abundant cabinetry, and a convenient drop zone, ensuring effortless organization and convenience. Outside, the sprawling backyard beckons with expansive patio spaces, an outdoor kitchen with a pizza oven and fireplace, and a newly rebuilt pool surrounded by lush landscaping and high-end lighting and sound systems. This home epitomizes elevated living, seamlessly blending authenticity with modern luxury. An absolute must-see to fully appreciate its exceptional offerings.

4836 E White Gates Drive Phoenix, AZ 85018

$6,990,000
4 Beds
5.5 Baths
7,100 SqFt
Status Active
MLS # 6781919
Property Type Single Family Residence
Price Type --
PRIVATELY GATED • On CAMELBACK MOUNTAIN an estate w/ Detached CASITA 1-BR 1-BA. Turn-Key Ready! w 4-Ensuite or 5 BR's overlooking all of ARCADIA. Really, this has UNOBSTRUCTED Horizon-Wide VIEWS of SUNRISES & SUNSETS, City-Lights from Scottsdale to the Far West Horizon over DT-PHX skyscrapers, aeroplanes landing & taking off. Peaceful Quiet & VERY PRIVATE 1-Story Resort like! Walnut & Travertine flooring All on 1-LEVEL w 12-15' Ceilings through out. CIRCLE-DRIVEWAY and 3 Car garage & parking & options for more. LARGE OPEN TERRACE & deep covered patios, patio-misting system, designed with entertaining in mind, Grass Lawn for Fido. Office, Theater, refrigerated Wine Cellar, fireplaces WOLF Gourmet Gas Kitchen Island & (-)Edge Pool Spa Mini-Golf Putting Green Furnishings available FURNISHINGS are Available!

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