Get All the Facts about PMI

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:

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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4222 E Hunter Court Cave Creek, AZ 85331

$1,161,033

3 Beds

3.5 Baths

3,050 SqFt

Status Active Under Contract

MLS # 6736554

Property Type Single Family Residence

Price Type --

Quick Move-in Ready Home! Backyard Landscaping included! Peak View is an intimate gated enclave of luxury single-level homes offering modern home designs by Cachet Homes. This Plan One home is situated on a view lot that backs to open space and features 3,050 SF, 3 bedrooms, 3.5 baths, a 3-car garage, game room, den, and an open-concept kitchen with a large island and quartz countertops. Additional upgrades include desert front yard landscaping, Nantucket Shaker white cabinets, garage epoxy coating, and more!

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1331 E Voltaire Avenue Phoenix, AZ 85022

$1,159,000

5 Beds

3 Baths

3,842 SqFt

Status Active

MLS # 6707762

Property Type Single Family Residence

Price Type --

Stunning 5BR/3BA home in Moonridge Golf Estates w/ spectacular views all around! Substantial remodel in 2021, w/ add'l upgrades since to include: full roof replacement, new Rheem water heater + Grundfos recirc pump, garage mini-split for climate control, epoxy garage floors, new cabinets, workbench & Omni Track tool holders, Belgard pavers, quartz counters/marble backsplash in kitchen & laundry, & quartz shower walls + ceramic tile floors in add'l baths. Floor plan provides great entertaining space downstairs incl. lg kitchen w/ oversized island & full bed/bath that could serve as guest suite or second primary. Upstairs find lg. beds all w/ walk-ins, gorgeous primary ensuite w/ mountain views + step out balcony. Backs to hillside wash providing privacy, views & those AZ sunset skies!

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7175 E Camelback Road Unit 202 Scottsdale, AZ 85251

$1,159,000

2 Beds

2 Baths

1,381 SqFt

Status Active

MLS # 6753329

Property Type Apartment

Price Type --

Experience unparalleled elegance and comfort in this stunning two-bedroom, two-bathroom, all en suite residence located in the highly sought-after Scottsdale Waterfront Residences. Designed with a split floor plan for maximum privacy and convenience, this home features a beautifully updated interior with newly painted walls and exquisite wood floors throughout. Enjoy a serene, quiet retreat on your private balcony, perfect for relaxation and taking in the surroundings. Scottsdale Waterfront Residences offers exceptional amenities, including a dedicated concierge service, valet parking, a rooftop pool with spectacular views, and a state-of-the-art fitness center. Located within walking distance to the renowned restaurants and shops at Fashion Square, as well as the vibrant Old Town Scottsdale and Scottsdale Waterfront.

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11703 N 123rd Way Scottsdale, AZ 85259

$1,159,000

4 Beds

2.5 Baths

2,701 SqFt

Status Active

MLS # 6761943

Property Type Single Family Residence

Price Type --

Discover the epitome of Scottsdale luxury in this breathtaking 4-bedroom, 2.5-bath sanctuary, perfectly situated in the coveted 85259. Relish in awe-inspiring mountain views, a private pool, and a heated spa—all designed for an indulgent lifestyle. Thoughtfully upgraded with Energy Star Renewal by Anderson windows, complete with a 30-year transferable warranty, this home seamlessly blends elegance with efficiency. Unwind by one of two sophisticated fireplaces or venture out to nearby premier golf courses, scenic hiking trails, and top-rated schools. Modern, refined, and poised for discerning tastes, this residence offers the ultimate Scottsdale experience. Don't miss this rare gem!

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3788 E Gemini Place Chandler, AZ 85249

$1,156,800

6 Beds

4 Baths

4,935 SqFt

Status Active

MLS # 6787807

Property Type Single Family Residence

Price Type --

This rare basement home offers6 bedrooms, 4 bathrooms, a large bonus room, 2 lofts, and a Pool! The spacious, open kitchen features granite countertops, island, gas cooktop, wall ovens, and large great room. The home is North/South facing and includes a Pebble tec pool, covered patio and grass backyard. The main living area has an office/bedroom, a full bath and bonus room. The basement is fully equipped with a full bathroom, living area (loft), and 3 bedrooms. Upstairs, you'll find the master bedroom suite, full bathrooms, 2 more bedrooms and loft. Don't miss the chance to see this incredible home located in a highly sought-after area of the City of Chandler.

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16810 E Roy Rogers Road Rio Verde, AZ 85263

$1,155,000

3 Beds

3.5 Baths

3,433 SqFt

Status Active

MLS # 6760171

Property Type Single Family Residence

Price Type --

Experience the perfect balance of tranquil living and convenient access to city amenities in this newly built 3,433 sq. ft. luxury retreat. Nestled just outside the hustle and bustle, this home offers breathtaking, uninterrupted views of Four Peaks, creating a stunning backdrop for daily life. While you'll feel miles away from the city, you're still just a short drive from all the essentials, making this the ideal haven for those seeking both serenity and convenience. Step out onto the sprawling deck, ideal for entertaining, complete with an outdoor kitchen and grill, all while overlooking the magnificent panorama of Four Peaks. The primary suite is a private oasis, featuring his-and-hers closets, plus a third closet for extra storage. The elegant ensuite bath is equipped with a large walk-in shower, a luxurious soaking tub, double vanities, and a dedicated makeup space. The suite also includes a sitting area with direct access to the deck, offering serene views at any time of day. Two additional ensuite bedrooms, each with walk-in closets and private bathrooms, ensure plenty of space and privacy for family or guests. The study, accessed through double doors, overlooks a peaceful front courtyard and is adjacent to a convenient half-bath. The utility room, thoughtfully designed for efficiency, comes equipped with a brand-new washer and dryer, a spacious wash tub, and generous counter space for folding laundry. Rounding out this home is an oversized 3-car garage with a circular driveway and optional drop-down attic access for even more storage. This exceptional home, designed for luxury and comfort, is ready for its very first owners to enjoy a lifestyle of elegance, peaceful views, and modern convenienceall within a short drive of the city.

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3619 N 87th Street Scottsdale, AZ 85251

$1,155,000

4 Beds

2 Baths

1,993 SqFt

Status Active

MLS # 6750485

Property Type Single Family Residence

Price Type --

Experience luxurious living in this stunningly designed Scottsdale home, where quality finishes and thoughtful details shine throughout. The dream kitchen is a culinary masterpiece, featuring an oversized island, quartz countertops, custom Italian cabinetry, a coffee bar, beverage center, and stainless steel appliances. The expansive primary suite offers a walk-in closet, plus an additional closet, and a spa-like ensuite with a double vanity. Each bedroom boasts custom-designed closets with built-in drawers, ensuring ample storage. Step outside to your private oasis—an entertainer's dream backyard with a new (2023) pool as the centerpiece. The oversized baja shelf is perfect for lounging, while the built-in fire pit table and BBQ area provide ideal spots for gatherings. The property also includes an RV gate with access from the back cul-de-sac, offering plenty of space and convenience. Completely redesigned in 2022, this home features new windows, doors, a sliding glass door, roof, water heater, electric panel, updated plumbing, flooring, and state-of-the-art appliances.Every detail has been thoughtfully curated for a modern lifestyle. Don't miss this extraordinary Scottsdale gem!

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34010 S State Route 89 Highway Wickenburg, AZ 85390

$1,150,000

4 Beds

4 Baths

2,836 SqFt

Status Active

MLS # 6749793

Property Type Single Family Residence

Price Type --

TO BE BUILT... Beautiful custom home on 4+ acres of horse property. Open concept floor plan with large chef's kitchen, walk-in pantry, and laundry room with sink. Main house consists of 3 en-suite bedrooms with an additional flex bedroom/office. Primary bedroom has dual vanity sinks with massive walk-in closet and oversized shower. Attached casita, accessible through the main house or separate exterior door. Casita has private kitchenette, full bathroom and walk-in closet. Giant 4-car garage with enough room for all your toys. Horse arena will be roughed in with option for homeowner to purchase complete package. Don't miss this opportunity for the perfect home in Wickenburg.

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34146 S State Route 89 Highway Wickenburg, AZ 85390

$1,150,000

4 Beds

4 Baths

2,836 SqFt

Status Active

MLS # 6749794

Property Type Single Family Residence

Price Type --

TO BE BUILT... Beautiful custom home on 4+ acres of horse property. Open concept floor plan with large chef's kitchen, walk-in pantry, and laundry room with sink. Main house consists of 3 en-suite bedrooms with an additional flex bedroom/office. Primary bedroom has dual vanity sinks with massive walk-in closet and oversized shower. Attached casita, accessible through the main house or separate exterior door. Casita has private kitchenette, full bathroom and walk-in closet. Giant 4-car garage with enough room for all your toys. Horse arena will be roughed in with option for homeowner to purchase complete package. Don't miss this opportunity for the perfect home in Wickenburg.

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8628 W Williams Road Peoria, AZ 85383

$1,150,000

4 Beds

3 Baths

2,640 SqFt

Status Active

MLS # 6770686

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This beautiful modern ranch has been thoughtfully designed and completely remodeled from the inside out and is a must see! At 2,640 sq. ft. of living space, custom designer finishes, new roof, new low-E windows throughout, this home is ready for you and your family to move in! Open floor plan invites you into a spacious living area perfect for entertaining. The well-equipped kitchen features oversize walk-in pantry, slim shaker cabinetry and beautiful quartz countertops with custom 18'' backsplash, ready for all your culinary adventures. Whether it's hosting friends for a game night or family during the holidays. 4 spacious bedrooms and three bathrooms, including a tranquil primary suite with build-in coffee bar, split floor plan with second primary, fireplace and large mud room. The standout feature of this property is its private 1.26 acre lot and newly remodeled backyard, brand new driving pool, 3,000 sq. ft. grassy area with all new irrigation lines, large covered patio, detached 2 car garage/workshop on its own electrical panel, 200 tons of new rock, privately owned well, storage space for work trucks, boats, RVs, horses & so much more! A host of desirable features including award-winning Peoria School District, as well as being close to freeways, shopping, and entertainment makes this home a rare find in highly sought-after north Peoria.

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2308 E Blue Bell Circle Payson, AZ 85541

$1,150,000

4 Beds

3 Baths

3,367 SqFt

Status Active

MLS # 6750593

Property Type Single Family Residence

Price Type --

Experience luxury living at its finest in this breathtaking hillside home located within the prestigious private golf country club of Chaparral Pines. Overlooking the 7th fairway and offering spectacular mountain views and sunsets, this residence combines elegance with unparalleled natural beauty. The expansive great room features vaulted T&G ceilings and a fireplace with stone accents, creating a warm and inviting space perfect for relaxing or entertaining. The kitchen is a chef's delight, equipped with granite countertops, stainless GE Profile series appliances, a gas cooktop, double wall oven, and a walk-in pantry. The primary bedroom and an additional bedroom are conveniently located on the main level, offering ease of access and privacy. MORE The walk-out basement offers a wet bar, a bedroom with an ensuite, and a huge game room that can double as an additional bedroom, providing ample space for entertainment or guest accommodations. Beautiful wood windows throughout the home add warmth and character, enhancing the overall aesthetic. The rear deck features remote-controlled screens, allowing you to enjoy the stunning views and fresh air in comfort and style.

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509 E Adamanda Court Phoenix, AZ 85086

$1,150,000

3 Beds

2.5 Baths

2,191 SqFt

Status Active

MLS # 6703349

Property Type Single Family Residence

Price Type --

WOW! This charming home in the serene Desert Hills Estates sits on a spacious cul-de-sac lot, welcoming you with a circular driveway and a massive concrete extension, a massive five-car garage AND a 2400 sq ft detached garage that can be used for a RV garage. With a built-in wood shop inside this is truly the craftsman dream space. Interior features include an attractive solid red oak flooring, recessed lighting, and a spacious living room with wall niches, pre-wired surround sound, and a cozy fireplace. Family room offers a perfect space to unwind, while the well-appointed kitchen boasts ample cabinets, quartz counters, a tile backsplash and SS appliances including a wine cooler. Expansive main bedroom includes abundant cabinetry and a private bathroom with dual sinks. Outside, the tranquil backyard offers a covered patio, paver patio, built-in BBQ, and breathtaking mountain views. This exceptional horse property is a must-see!

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