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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7525 E Gainey Ranch Road Unit 188 Scottsdale, AZ 85258

$1,150,000

2 Beds

2 Baths

2,047 SqFt

Status Active

MLS # 6759996

Property Type Single Family Residence

Price Type --

Welcome to Gainey Ranch Greens! beautiful community of single family homes, choice lot with no home behind you, 2 bedrooms and den -SINGLE LEVEL home with vaulted ceilings & split floor plan, vaulted ceilings, 2 fireplaces, spacious kitchen with breakfast area opens to family room, charming backyard BBQ station, 2 side yards and lovely plantings, close to the community pool. Enjoy access to all of the best Gainey Ranch amenities including the incredible recently remodeled clubhouse, heated pool & spa, pickle ball courts, tennis courts, and state of the art fitness center! 24 hour guard gated entry - this is the perfect winter getaway or year-round home!

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402 W Augusta Avenue Phoenix, AZ 85021

$1,150,000

4 Beds

2.5 Baths

2,554 SqFt

Status Active

MLS # 6752602

Property Type Single Family Residence

Price Type --

Looking for a home in a highly sought after area in the heart of North Central Phoenix? Proximity to Murphy's Bridal Path for walking and biking. Welcome to this beautiful 4 bdrm home with a brand new kitchen as of 8/1/24. Upgraded stainless steel Smart appliances. Luxury vinyl wood flooring, 2024. Energy Star efficiency, multi zone A/C. Whole house water softener and filtration system. New interior doors. Half bath renovated 2024. Large living/dining area with fireplace, perfect for entertaining. Separate office space.

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11633 E Bella Vista Drive Scottsdale, AZ 85259

Open House

$1,150,000

3 Beds

2 Baths

2,545 SqFt

Status Active

MLS # 6787599

Property Type Single Family Residence

Price Type --

Resort style Stonegate community-24hr GUARD GATE. Enjoy back yd, desert & Camelback Mt VIEWS. Geoffrey Edmunds built 3 Bd , 2 ba hm-exp Barcelona flrplan- 2545sf per appraiser, light/bright, flagstone flrs, wht shutters, remote window coverings & more. Spacious kitchen-large island, granite cntrs, lots of cabinets, breakfast area & access to back patio to enjoy calming rock waterfall & desert. Open FR-wall of windows overlooking patio, extensive desert, beautiful mature cactus & CAMELBACK MT VIEWS. Enter LR & DR-lots of light from 3 tall windows & DR w/sliding door to cvrd patio. Primary lg bdrm ensuite- 2 closets, bath w/sep tub & shower, door to patio & split from other bdrms. FURNITURE AVAILABLE. Fantastic amenities-clbhs, htd lap pool/spa, 7 tennis crts,pickleball,play area,basketball

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29618 N 144th Way Scottsdale, AZ 85262

$1,149,999

6 Beds

5 Baths

3,881 SqFt

Status Active

MLS # 6767900

Property Type Single Family Residence

Price Type --

Located on 1+acre & w/vast mountain views, this single-level, HOA-free, custom home has it all! With an open floor plan, the primary bedroom is found on the opposite end of the house, away from the 3 bedrooms. Inside? A seating area, spa tub, & walk-in closet. Enjoy your entertainer's kitchen feat. granite counters, stainless appliances, custom cabinets, & a walk-in pantry! A formal dining room & bonus living room are also to be found. And then there is the attached casita providing a bedroom, bath, full kitchen, & its own entrance. A 4-car garage has a workshop! Above it is a studio apt w/balcony! The large backyard has 2 fireplaces, patio, pebble-tec pool, turf lawn, raised beds w/fences, & a private retreat w/AC. Lastly, the property is located near stellar recreational activities!

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1568 E Canyon Way Chandler, AZ 85249

$1,149,999

6 Beds

3.5 Baths

4,629 SqFt

Status Active

MLS # 6776621

Property Type Single Family Residence

Price Type --

Welcome to your dream home in an exclusive gated community! This stunning two-story with 6 spacious bedrooms, situated directly across from a serene park without any homes in front, is packed with hidden gems and upgrades galore- a freshly landscaped front yard, fine detailS throughout such as accent walls and fresh upgraded carpet upstairs, the main floor has tastefully picked new luxury vinyl flooring, beautiful new windows, an RV gate, a backyard sprawling with upgraded pavers, the fence lined in beautiful warrantied ficus trees, a brand new splash pad that's just like, if not better than a park, that even comes with a transferable warranty! This home offers not just a residence, but a lifestyle made for comfort, luxury, entertainment, and creating memories.

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1075 W Encinas Street Gilbert, AZ 85233

$1,149,990

5 Beds

3 Baths

3,610 SqFt

Status Active

MLS # 6761301

Property Type Single Family Residence

Price Type --

3600 square foot home on over an acre. Horse property. Custom cabinetry, granite counters w/integrated sink & dishwasher, sub zero fridge. All appliances are top of the line. Real wood oak floors in kitchen & dining areas. 19x21 den/library (exec). 950' 3 car garage. Separate detached workshop. water softener & water distiller for fridge. 11 citrus & 10 fruit/nut trees. Master bath has jacuzzi & large shower. Ceiling fans throughout. 60' covered patio, surround sound in family room. approx 1500 foot basement. 20 kw back up generator w/500 gal underground propane tank. 2 water heaters (1 propane-1 electric). Irrigated Lot is over an acre and near the freeway. Fire pit for entertaining. Commercial greenhouse for hobby or storage. NO HOA! North/South facing.

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1931 E Paso Nuevo Drive Phoenix, AZ 85086

$1,149,900

4 Beds

3.5 Baths

3,092 SqFt

Status Active

MLS # 6756202

Property Type Single Family Residence

Price Type --

Come and enjoy this beautifully nestled single-family home on a private and paved road that offers the best of Desert Hills living! - a rare find in this peaceful, scenic area. Inviting circular, paver driveway & courtyard entry. An open-concept, split floorplan features 4 spacious bedrooms + den and an office with 3.5 luxurious baths, ideal for those seeking both space and modern amenities. Sprawling island-kitchen boasts loads of beautiful soft-close cabinetry, quartz counters, stainless appliances and walk-in pantry. Owner's suite with dual-vanities, walk-in shower, soaking tub, walk-in closet and private exit to backyard. Relax in your private and fully landscaped resort backyard with heated pool & spa, expansive Alumawood pergola/patio, and easy-maintenance turf. Three-car extended garage, ideal for vehicle storage or a workshop. For those looking for energy efficiency, the property boasts a highly updated solar system complete with a full back up Tesla Powerwall battery system boasting 40.5 kwh of back up storage, significantly reducing energy costs while providing peace of mind. A customized water cleaning/softening system with arsenic removal and UV light cleansing. With NO HOA, you'll have the freedom to personalize your property and enjoy the serene desert lifestyle without restrictions. Whether you're entertaining guests or enjoying a quiet evening under the stars, this home is a true Desert Hills gem. Come experience this rare opportunity today!

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15604 E Scorpion Drive Fountain Hills, AZ 85268

$1,149,900

3 Beds

3 Baths

2,046 SqFt

Status Active Under Contract

MLS # 6763720

Property Type Single Family Residence

Price Type --

Gorgeous Spec Home with a private pool just completed! Contemporary styled crown molding & exquisite features throughout this one! Fabulous kitchen boasts Quartz countertops with waterfall edges to the floor on the island, shaker style cabinets with lighting & hidden outlets on backsplash. Bosch stainless steel appliances which includes full size oven as well as a Convection/Microwave combo. Beverage fridge added for additional cooled storage & entertaining. 6 foot electric, color changing, remote controlled fireplace. Ensuite master has his/her sinks, custom shower with dual heads, shampoo niches & a bench seat as well as a huge walk in closet with multi-level shelving/rods and a window for ample lighting. Wonderful laundry room has upper/lower cabinets, a sink & hanging rod. Over-sized & insulated 3 car garage pre-wired for future wall mount mini split AC system with epoxy floor, utility door & on demand tankless hot water heater. Fully landscaped desert front yard & artificial turf in back both featuring lighted steps & pathway lighting. Pool has pebble sheen finish, raised tile wall, 3 waterfall scupper features & a bathing platform/over-sized seat. wifi accessible controls, Dusk to dawn exterior photocell coach lights. Custom wrought iron view fencing & side gate to the backyard. All cabinets are soft close doors & drawers with custom 7 black hardware. Ceiling fans throughout the home. Home is pre-wired for cable, satellite, wi-fi, surround sound speakers in the greatroom & back patio ceiling speakers. Elongated low water use, comfort height toilets in all 3 bathrooms. Upgraded spray foam insulation in the home & garage to help save on electric bills.

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32621 N 15th Lane Phoenix, AZ 85085

$1,149,900

4 Beds

3 Baths

3,012 SqFt

Status Active Under Contract

MLS # 6754033

Property Type Single Family Residence

Price Type --

Don't miss this stunning home with unobstructed mountain views! The heated pool, spa, gas firepit with conversation area, and built-in bbq make this home feel like a vacation everyday! Large covered patio, pavers, synthetic grass, and professional landscaping complete the backyard oasis. This triple split 4 bedroom plus flex front room is complete with 3 bathrooms and a 3 car garage. New premium luxury vinyl plank flooring throughout living areas including primary ensuite. Secondary bedrooms have new carpeting. This home has all new paint and updated trim and moldings throughout. Located on a cul de sac in a small gated enclave of highly sought after Sonoran Foothills surrounded by trails and parks, this home is ideal for Arizona living.

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5231 E Muriel Drive Scottsdale, AZ 85254

$1,149,900

4 Beds

2 Baths

2,647 SqFt

Status Active

MLS # 6732153

Property Type Single Family Residence

Price Type --

Major Price Reduction!!! Welcome to to this Amazing house in the highly sought after Arabian Views with No HOA!!! Freshly remodeled from head to toe, this house is a MUST see in person!!!The interior boasts 16' Celing in the entrance and 10' ceiling through out with 6'' crown molding in all the right places, high end marble like porcelain 16/32 tile through out including showers, free standing stone resin bath tub, 3/8 glass shower door in both bathrooms, stunning kitchen with custom cabinets with glass, dark blue dazzling granite countertop in the kitchen with all new appliances, are just a few of the items hat will capture your heart upon entering this house. Hurry as this beauty will take out wings and FLY!!!

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7285 E Arlington Road Scottsdale, AZ 85250

Open House

$1,149,900

2 Beds

2.5 Baths

2,463 SqFt

Status Active

MLS # 6769913

Property Type Single Family Residence

Price Type --

Welcome to the Classic Updated & Renovated Detached Patio Home located in the Gated Community of *La Jolla Blanca* Camelback Mountain Views & Arizona Sunsets* Private Courtyard, Stunning Entry W/ Old World Charm, Open Gorgeous Kitchen with a Beautifully Extended Island. 5 Burner Gas Cook Top, Stainless steel Appliances, Custom Cabinets, Breakfast Area & Formal Dining. Open Great Room W/ Fireplace. Updated Remodeled Bathrooms. *Two Spacious Primary Suites with Custom Bathrooms* Open Balcony Loft Game room or used as Office /Den- Exits to a upstairs View Deck. Private Rear Covered Patio with Electronic shades, Garage has epoxy Floors with Custom Cabinets. *Property is next to a Lush Greenbelt *Beautiful Place to Call Home* * Near Old Town Scottsdale's upscale Shopping & Fine Dining*

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3014 E Avalon Drive Phoenix, AZ 85016

$1,149,899

4 Beds

3 Baths

2,035 SqFt

Status Active

MLS # 6743521

Property Type Single Family Residence

Price Type --

Step into a breathtaking, move-in-ready designer home, built in 2024. As you pass through the elegant iron front door, you're greeted by an open-concept living space featuring custom Engineered hardwood flooring, stainless steel Bespoke Appliances, over sized kitchen island w/built in microwave, 15in deep uppers, pot filler & Quarts counter tops/backsplash. Primary bedroom offers a Spacious walk in closet w/organizers and a luxurious en-suite with double rain shower, separate entrance to over sized covered back patio. Built-in closet & LED lights throughout. Bonus room can be an office/bedroom. Large laundry/pantry room w/sink and lots of storage. Foam insulation and synthetic stucco finish. MyQ App Garage door opener w/Camera, EV ready & epoxy flooring. See it today.. Owner/Agent.

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