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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8311 E Vista De Valle -- Scottsdale, AZ 85255

$1,295,000
3 Beds
2 Baths
2,027 SqFt
Status Active
MLS # 6784948
Property Type Single Family Residence
Price Type --
This beautifully updated 3-bedroom, 2-bath home spans 2,027 square feet and is situated on a generous 13,496 square foot cul-de-sac lot in the prestigious Pinnacle Peak Country Club. Boasting numerous modern updates and charming features, this home is designed for both comfort and style. As you approach the property, you'll be greeted by river rock walkway, a lovely courtyard in the front of the home, mountain views, complete with a tranquil water feature, setting the tone for the serene ambiance that awaits inside. Step through the entryway to discover gorgeous Saltillo tile flooring throughout the living spaces, accentuated by striking wood beams in the living room that add character and warmth. The home's layout is both functional and inviting, featuring a spacious living area and a beautifully updated kitchen with new refrigerator May 2024. New Pella sliding doors, installed in 2024, provide seamless access to the backyard, creating an effortless flow for indoor-outdoor living. The backyard is a true retreat, featuring a recently updated, resurfaced, and retiled pool (2020) and a putting green, perfect for outdoor fun and relaxation. You'll spend countless hours enjoying the sunrises and sets in this breathtaking backyard. The owner's suite is a private sanctuary, boasting a large walk-in closet and plush new carpet, installed in 2023 along with office/bedroom, for ultimate comfort. All bedrooms are equipped with wooden shutters & guest bedroom new window and blinds at sliders (2024) ensuring privacy and an abundance of natural light. Fresh paint and minor repairs completed in 2024 make this home truly move-in ready. Additional features include a roof that has been maintenanced in 2024 and new wooden door installed for the 2-car garage. Newley refreshed landscaping, recessed lighting and light fixtures Oct, 2024. This home combines modern updates with classic Southwest charm, offering the best of both worlds.

3907 Gold Ridge Road Wickenburg, AZ 85390

$1,295,000
3 Beds
3.5 Baths
2,769 SqFt
Status Active
MLS # 6783361
Property Type Single Family Residence
Price Type --
This exquisite home on an oversized lot, has 3-bed, 3.5-bath, just over 2,700 sq ft, combines luxury and functionality, with the added benefit of a private casita perfect for hosting guests. Enter through a charming front courtyard featuring a stone fireplace that creates a warm and inviting entry. Inside, the open floor plan flows seamlessly from the spacious kitchen, where a large island with gleaming granite countertops and upgraded appliances offers ample cabinet space for storage. A wall of disappearing sliding glass doors connects the indoor space to the stunning backyard, enhancing the home's blend of indoor and outdoor living. The backyard is an entertainer's dream, designed for both relaxation and memorable gatherings. At its heart is an exquisite, top of the line, outdoor kitch The outdoor kitchen is complete with a high-end barbecue grill, wood-burning pizza oven, and a large flat-top stone cooking surfaceideal for everything from summer cookouts to gourmet meals. A custom pergola provides shade over the kitchen, creating a comfortable retreat on sunny days. For cooler evenings, a stone fire pit offers a cozy gathering spot, while a luxurious pool/heated spa, often referred to as a spool, invites a refreshing dip year-round. Elegant travertine tile patio flooring and low-maintenance landscaping add sophistication to the outdoor space, ensuring a beautifully kept area with minimal upkeep. The primary suite is a bright and tranquil retreat, bathed in natural light and thoughtfully designed for both relaxation and style. The spacious bedroom flows into a primary bathroom featuring a large soaking tub, dual vanities, a walk-in shower, and his-and-hers walk-in closets, providing ample space and privacy. This home balances elegance with comfort, seamlessly extending the living space into a remarkable outdoor oasis.

22611 W Patton Road Wittmann, AZ 85361

$1,295,000
6 Beds
3.5 Baths
4,179 SqFt
Status Active
MLS # 6761177
Property Type Single Family Residence
Price Type --
Nestled just outside of Surprise in Wittmann, this exquisite custom home offers the perfect blend of luxury living and equestrian convenience. Situated on 2.5 acres of fully walled, private land, this estate is accessible via a paved main road and provides an idyllic retreat with easy freeway access. Step inside to find a beautifully remodeled kitchen (2022) that is a chef's dream, featuring a Forno 8-burner stove with double oven and pot filler, a Forno microwave/convection oven, and a spacious refrigerator—all designed for gourmet cooking and entertaining. The kitchen is complemented by dark wood-stained doors, adding to the home's warm, inviting ambiance. Outside, the property is thoughtfully designed for both leisure and practicality. Enjoy the expansive paved patio area with solar lighting for a peaceful evening outdoors. For horse enthusiasts, the second parcel boasts 3 horse stables, a round pen, and an arena, all equipped with water, fans, and high-speed internet. Additional highlights include a private well with a recently replaced pump and well box, owned and PAID-OFF SOLAR PANELS ensuring low utility costs, a gated entrance for added privacy, and a 4-car garage with an RV charging outlet. The property's central vacuum system adds modern convenience to this serene country estate. With unparalleled amenities, privacy, and high-speed internet, this property is the perfect haven for those seeking luxury and the equestrian lifestyle.

5253 E Palo Brea Lane Cave Creek, AZ 85331

$1,295,000
3 Beds
2.5 Baths
2,376 SqFt
Status Active Under Contract
MLS # 6766681
Property Type Single Family Residence
Price Type --
Luxury Toll Brothers built 3 bed +den, 2.5 bath remodeled home, on a private corner lot. Stunning vinyl flooring throughout, powder room with designer vanity, high-quality upgraded fixtures and fans flow throughout the home. Laundry room features a farm sink. The expansive great room w/ beautiful gas fireplace, custom built-in shelving, great room opens to the eat-in-kitchen featuring premium SS Jenn-air appliances, gas cooktop. large Island, wall oven and lighting. Owner had a decorators eye when adding the walk-in pantry, cabinets to the ceiling with extra lighting, desk in the hallway, bookshelf built into otherwise wasted space, and let's talk about the primary bedroom suite! The full bathroom features separate vanities, lovely soaking tub and tiled oversized walk-in shower. The walk-in closet needs a drum roll entrance featuring cabinets and shelving providing plenty of space for shoes, purses and clothing. Mirrored doors on the closets, make-up desk with the perfect lighting. The backyard is an oasis with the oversized covered patio and inviting pool to relax by. The location of this gated subdivision is situated near shopping, restaurants, golf, easy fwy/hwy access.

20240 E Calle De Flores -- Queen Creek, AZ 85142

$1,295,000
5 Beds
3.5 Baths
5,195 SqFt
Status Active
MLS # 6781422
Property Type Single Family Residence
Price Type --
This exquisite 5-bedroom, 3-bathroom estate epitomizes luxury living. The open concept design seamlessly blends spacious living areas, accentuated by a gourmet kitchen featuring granite countertops, white custom cabinets, and top-of-the-line stainless steel appliances, including a huge double island perfect for entertaining. The entire home has been remodeled with a designer's style, ensuring every detail exudes elegance and sophistication. The main bedroom is a serene retreat, boasting a separate sitting room and private balcony. The expansive en suite bathroom offers a separate soaking tub and shower, dual sinks, and connects to a private laundry room and gym, all designed with high-end finishes. A MUST see to appreciate

10233 E Caron Street Scottsdale, AZ 85258

$1,295,000
4 Beds
3 Baths
3,280 SqFt
Status Active
MLS # 6784561
Property Type Single Family Residence
Price Type --
Excellent opportunity to make this spacious 4bed/3bath+ bonus, situated on an approximately 1/3 acre lot in coveted Scottsdale Ranch your new HOME! Move in as is, or reimagine and personalize!

8301 E Angus Drive Scottsdale, AZ 85251

$1,295,000
4 Beds
3.5 Baths
2,615 SqFt
Status Active Under Contract
MLS # 6745058
Property Type Single Family Residence
Price Type --
This stunning residence features engineered hardwood flooring throughout and boasts raised 10-foot ceilings that create an airy, open atmosphere. Custom 18 foot slider that leads to a beautifully landscaped outdoor oasis that features a built-in ramada and grill, multiple citrus tress, a detached gazebo and full privacy with a 15 foot wall of greenery! The kitchen is a chef's dream with marble countertops and high-end Viking appliances. Huge custom master suite with a 10x10 walk in closet and a private secret garden! With four oversized bedrooms and 3.5 elegant bathrooms, this home offers ample space for relaxation and entertaining. This home also has a massive side yard built perfectly for an RV and lastly, paid off solar panels!

6707 N 10th Place Phoenix, AZ 85014

$1,295,000
4 Beds
4 Baths
2,700 SqFt
Status Active Under Contract
MLS # 6773329
Property Type Single Family Residence
Price Type --
Step into this newly completed modern marvel, reimagined from the ground up by a skilled builder. Only a few walls from the original structure remain, offering a fresh perspective on contemporary living. Enter through a inviting foyer illuminated by twin skylights, and be greeted by warm hardwood floors that flow throughout. A bright an airy family room, anchored by a sleek gas fireplace, blends effortlessly with a cozy dining area and artfully designed kitchen. The chef's haven features an oversized island, premium stainless-steel appliances, and quartz countertops, all framed by custom cabinetry. Both primary suites boast soaring vaulted ceilings, spa-inspired bathrooms, and spacious walk-in closets. The home offers thoughtful details like a tankless gas water heater in the attached two-car garage and private en-suite baths for all three bedrooms. Outside, the backyard is designed for serenity and low maintenance, with a covered patio, artificial turf, and privacy ensured by a solid block wall. There's even room for a pool if you wish. The front entry charms with a courtyard framed by brick pavers. As an added note, the seller, who is also the builder, owns the neighboring home and is currently working on plans to rebuild it, offering a rare opportunity to influence the future of this exclusive enclave.

3909 S Veronica Lane Gold Canyon, AZ 85118

$1,295,000
4 Beds
3 Baths
2,989 SqFt
Status Active
MLS # 6769878
Property Type Single Family Residence
Price Type --
Welcome to Montana Dorada, the best kept secret in Gold Canyon Arizona. This single level home is part of an exclusive Modern Farm Desert Collection. Offering paved roads, quick access to the US 60, close to shopping and dining, complete with breathtaking views of the iconic Superstition Mountains at every turn. Offering 2989 livable SF, 4 bedrooms, 3 bathrooms, a large kitchen island, wine bar, and a butler's pantry. This split floorplan offers a large owners suite and guest ensuite both with private access to the large covered backyard patio. All tile throughout with light earthy tones to compliment every style. The developers are offering a 25,000 credit for rate buy down and custom owners closet build out. This new build comes with an oversized 3 car garage complete with epoxy floor. Carefully positioned to offer both privacy and optimized views of the mountains. Montana Dorada in Gold Canyon Arizona offers peaceful living with amazing access to city amenities. If you are looking for golfing, hiking, biking, and sensational outdoor adventure while still being close to modern amenities this beautiful single level new build in Montana Dorada is a must see.

9220 E Whitethorn Circle Scottsdale, AZ 85266

$1,295,000
3 Beds
3 Baths
2,672 SqFt
Status Active
MLS # 6777879
Property Type Townhouse
Price Type --
Experience unparalleled luxury & a sophisticated lifestyle at The Boulders Resort & Spa. Situated on a coveted golf course lot & set back from the 18th Fairway, this stunning FULLY FURNISHED, TURNKEY villa is a rare gem that combines elegance, comfort & the warmth of home. Whether you're looking for a primary residence, a vacation getaway, or an investment property w/ current residential income potential, this beautifully appointed residence offers the perfect sanctuary for relaxation, entertaining and creating unforgettable memories. Your villa comes tastefully outfitted w/ everything needed to unwind, including ALL furnishings, artwork, linens & household items. Luxurious features & finishes include a gourmet kitchen, an open-concept great room showcasing soaring ceilings w/ vega beams, walls of windows & a gas fireplace. 3BR's/3BA's (two are primary suites) provide spa-like ensuites. The outdoor living area includes a covered patio, outdoor dining space, and a second level sun deck, perfect for taking in the beautiful Arizona sunsets. Enjoy exclusive access to The Boulders Resort amenities, including the enclave's private community pool, golf courses, spa services, dining, and trails. Don't miss the opportunity to make this stunning villa your own!

2731 W Desert Ranch Road Phoenix, AZ 85086

$1,295,000
5 Beds
4 Baths
3,068 SqFt
Status Active
MLS # 6665619
Property Type Single Family Residence
Price Type --
SELLER FINANCING AVAILABLE $1,425,000. LEASE OPTION/LEASE PURCHASE AVAILABLE. Inquire for details. Resort style backyard on one acre w/ NO HOA! Entertainer's dream! NINE HOLE PUTTING GREEN COURSE! TENNIS/BASKETBALL COURT! COMPLETE SEPARATE GUEST HOUSE! 2 GARAGES FOR 5 CARS (2 + 3 CAR CLIMATE CONTROLLED GARAGE) + parking for more! MOUNTAIN VIEWS! Heated AND cooled pool w/ baja shelf! Fire pit, outdoor kitchen, OWNED solar! Open floorplan, & master bedroom split floorplan! This home truly has it all. Must see to truly appreciate the unique character & setting of this home, located conveniently near the immediate suburban/shopping areas in Anthem, AZ. Easy freeway access to continue to enjoy the natural playgrounds of Lake Pleasant, or to hike one of the many trail nearby, just to name a few options. Drive South for a dose of ''city'' in Phoenix, or North towards Sedona, Flagstaff & more INTERIOR DETAILS *Smart House w/many features programmable through apps *Custom Built in 2003 *Owned Whole-Home Solar System (19.77kw, 59 LG Panels) *Superior Architectural Details *Mantel-and-Hearth Fireplace *Dual-Pane Windows *Owned Water Softener *Indoor Laundry w/Cabinetry *Built-In Microwave & Wall Oven *Walk-In Pantry w/Shelving *9', 10', 12' Ceilings *Updated indoor/outdoor LED lighting *Wooded Accent Wall *Hardwood Floors & bedroom wood flooring & baseboards *Natural Travertine Tile *Master Shower Tile *Fresh Well Water *2-Car epoxied Garage w/side entry & built in cabinetry *3-Car drive thru Garage, epoxied w/Built-In cabinetry EXTERIOR DETAILS * Lighted tennis/basketball court *9 hole mini putting greens *Three 50 amp RV plug-ins on property *Landscape rock in front and back yards *Painted front walls (2021) *Upgraded Septic System/Tank *Garage doors-added outside keypads w/lifetime warranty *100% Silicone Roof Coating w/50-Year Warranty (2019) *Custom Iron-And-Glass Entry Door *Preferred North/South Exposure *Split-Stone Fireplace Column *Pebble-Finish Pool: Heats & Cools, Variable Speed Pump *Heated Spa *Guest House Paver Patio w/Extensive Sail Shade *Covered Front & Back Patios *Front/Back Auto Watering System *East & West Side RV Gates *Easy-Care Desert Front Landscape *Block Wall Fencing for Privacy Not ready to make this home your primary residence? With no HOA, consider this home, currently an active short term rental, as a spacious and unique opportunity for short term rentals, seasonal rentals, and more. MAIN HOUSE: 3 BD 3 BA 2,591 SF 2-CAR GARAGE GUEST HOUSE: 1 BD 1 BA 477 SF 3-CAR GARAGE (previously was used as a drive-thru option, currently being used as a game room and with a new sliding glass door).

4114 Cactus Blossom Road Wickenburg, AZ 85390

$1,295,000
2 Beds
2.5 Baths
2,381 SqFt
Status Active
MLS # 6705527
Property Type Single Family Residence
Price Type --
Welcome to your dream oasis in the heart of the exclusive Wickenburg Ranch community! Within the serene beauty of this Brasada home, this stunning residence offers an unparalleled blend of luxury and tranquility. As you step through the front courtyard, you're greeted by the inviting charm of this home's curb appeal. Modern neutral colors adorn the exterior, setting the tone for the elegance that awaits inside. Prepare to be captivated by the breathtaking views that greet you from the backyard oasis. Overlooking the mountains, lush golf course, and tranquil creek, the backdrop is nothing short of awe-inspiring. Spend evenings gathered around the cozy firepit, soaking in the serenity of the desert landscape. With two remote controlled patio shades you have the ability to easily shade the patio at will. Inside, the home exudes warmth and sophistication, with plenty of natural light streaming through numerous windows. The updated kitchen boasts sleek appliances, granite counters, ample cabinets, and extra storage areas, making it a haven for any culinary enthusiast. The dining room and master bedroom both have window seats for additional seating and storage. In the living area, a gas stove beckons for cozy evenings spent curled up with a good book or enjoying the company of loved ones. Retreat to the luxurious master suite, where the updated bathroom awaits with a spacious walk-in shower and indulgent soaking tub. Relax and unwind in style, surrounded by elegant finishes and serene ambiance. The oversized laundry room serves as a multifunctional space, doubling as a convenient office area. The guest bedroom offers privacy and comfort with its own en-suite bathroom, ensuring that visitors feel pampered during their stay. Pleated shades and plantation shutters throughout the home provide both style and functionality. In addition, the home has a central vacuum for convenience and a wine fridge for making entertaining a breeze. Completing this exceptional property is an oversized 3-car garage, complete with beautiful, attached cabinets for additional storage, and two golf cart electrical outlets for charging. Whether you're a car enthusiast or simply in need of extra space, this garage has you covered. Don't miss your chance to experience resort-style living in this exquisite Brasada Shea home!!

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