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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402 E Berridge Lane Phoenix, AZ 85012

$1,145,000 - 4Br/3Ba -  for Sale in Lester Terrace 2, Phoenix
Open House
$1,145,000
4 Beds
2.5 Baths
2,323 SqFt
Status Active
MLS # 6776411
Property Type Single Family Residence
Price Type --
Welcome to this beautifully remodeled 4-bedroom, 2.5-bath home nestled in Central Phoenix, offering an ideal location near the 51 freeway, popular dining spots, and the Uptown Farmers Market. This inviting property features modern upgrades throughout, including granite countertops, energy-efficient tankless water heaters, and vaulted ceilings that add an open, airy feel. The layout is designed for both functionality and style, with spacious bedrooms and thoughtfully updated bathrooms. Perfectly positioned for convenient access to the best of Phoenix, this home offers a balance of comfort, location, and refined updates for today's lifestyle.

1139 E Dolores Road Phoenix, AZ 85086

$1,140,000
4 Beds
3.5 Baths
3,038 SqFt
Status Active
MLS # 6681675
Property Type Single Family Residence
Price Type --
Another beautiful home by NEXTGEN Builders to be built: 4 BD plus office/den, 3.5 BA, high quality luxury home, oversized 2 car gar plus 46+' RV gar with 12x14' tall garage door. Large lot. No HOA, oversized contemporary front door, 2x6 framed exterior, large kitchen island, quartz counter tops throughout. All bedrooms have walk-in closets. Master bath has large entry shower with standalone tub and double sinks. 8' doors throughout. High ceilings, energy efficient spray foam insulation, post tension foundation, Pictures are of model home.

2775 S Baker Drive Apache Junction, AZ 85119

$1,140,000
4 Beds
3.5 Baths
3,273 SqFt
Status Active
MLS # 6721580
Property Type Single Family Residence
Price Type --
Breathtaking Home with Spectacular Mountain Views nestled on 1.3 acres of serene living, perfect blend of tranquility and luxury. Owner's suite is a private retreat featuring a spa-like bath with glass shower, soaking tub, and a walk-in closet with ample storage. Split Floorplan: This thoughtfully designed layout ensures privacy with the owner's suite on one side and a large flex room along with three guest rooms in another wing. One guest room with en suite bath, while two others share a convenient Jack and Jill bath. A powder room is perfectly situated off the flex space/living room. With 10ft ceilings, spray foam insulation for superior energy efficiency, and large dual pane windows framing picturesque views, every detail of this home exudes elegance and comfort. The heart of the home is an expansive open kitchen featuring a huge center island with quartz counters, a large walk-in pantry, A 4-car garage provides ample space for your vehicles and storage needs, including a dedicated charger for electric vehicles. The meticulously planned yard offers spaces for everything - from enjoying the views to hosting BBQs in the dedicated entertaining area. Artificial turf ensures low maintenance, while well-planned drainage and a garden area cater to all your outdoor needs. There's even space for an additional dwelling, with plans for the next phases of yard development available (pool ADU). The property features a shared well with 4 other homes, reaching 550 ft deep with water at 240 ft. A water softener and RO system ensure high-quality water throughout the home. Spray foam insulation offers excellent energy efficiency. Escape the hustle and bustle with light-restricted nighttime living, perfect for stargazing and enjoying the peaceful ambiance of your surroundings.A few days each year, for just a few minutes, the sun projects a larger-than-life shadow of a cougar chasing its prey, known as the Cougar Shadow. Witness this breathtaking natural event right from your own backyard. This custom home is more than just a place to live; it's a lifestyle. Don't miss the opportunity to make this extraordinary property your own. Experience the perfect balance of luxury, comfort, and natural beauty.

17810 E Stocking Trail Rio Verde, AZ 85263

$1,139,900
2 Beds
2.5 Baths
2,186 SqFt
Status Active
MLS # 6762458
Property Type Single Family Residence
Price Type --
Welcome to your Spanish Hacienda in the 55+ community of Trilogy at Verde River. Wow!! This 2 bedroom, 2.5 bath home is absolutely stunning! The front courtyard has an inviting sitting area with an exterior fireplace. As you enter the home, you'll see the den/office, with a barn door. The hallway opens to the kitchen & great room. There are luxury upgrades everywhere! Wide plank tile flooring throughout, with some fun, white washed tile in the bedrooms to make a statement. Beautiful plantation shutters, and the sliding glass doors along the back to bring the outdoor living in. The outside patio has plenty of room for entertaining & the landscaping is exquisite! There is a walking path around the home, to give a little more space to the left side and behind. Trilogy has too many amenities to mention. The Resort style pool, a lap pool, Eddy's Poolside dining, Alvea Spa, a golf course by Tom Lehman, Afturburn Fitness Center, Tennis & Pickleball Courts. Bocce Ball, a 7.5 acre Dog Park, Needle Rock Restaurant, Cooking Classes at Helen's Kitchen, Classes at The Art Loft, outdoor concerts and more!! This is not just a community, it is a lifestyle. Truly a one of kind home, don't miss it!

9703 N 175th Avenue Waddell, AZ 85355

$1,139,000
4 Beds
5 Baths
3,776 SqFt
Status Active
MLS # 6658676
Property Type Single Family Residence
Price Type --
Everything you need is right here! Bring all your critters to this home which offers an ideal layout for modern multi-generational living. There is a casita/mother-in-law suite with a full kitchen, bathroom and its own garage. The main house features a master suite, two bedrooms, an office, a jack-and-jill bath, two half baths, and a variety of timeless finishes. Appreciate the high ceilings with exposed wood beams, a built-in entertainment center, stained concrete flooring, exquisite light fixtures, and crown molding. The kitchen is a culinary haven with custom cabinetry, granite countertops, a beautiful backsplash, and a large island/breakfast bar. A sizable detached garage enhances the property, offering extended covered parking, barn doors, full electric, and water connections. Enjoy stunning views of the White Tanks and Arizona sunsets from this exceptional dwelling. No HOA and horse privileges seals the deal. Waddell is an ultimate equestrian community that, with the help of some modern advancements, has the opportunity to live in a fantastic climate where they can ride their horses year-round. The sunny weather allows for easy access to riding and plenty of space for arenas and washes stalls. This is because Waddell, AZ, has irrigation canals that help the community sustain their animals at a reasonable cost to irrigate their land. This is why Waddell is considered one of the best places to live for equestrian enthusiasts in the west valley. The White Tanks Regional Park is nearby for all of these great outdoor activities such as picnics, camping, hiking, mountain biking and horseback riding.

2433 E Charlene Place Phoenix, AZ 85024

$1,139,000
4 Beds
3.5 Baths
4,319 SqFt
Status Active
MLS # 6754679
Property Type Single Family Residence
Price Type --
So many recent renovations and upgrades! All new luxury flooring, kitchen, bathrooms, lighting, custom closets, custom cabinetry in the laundry room, all new landscaping with new drip system and lighting, etc. This is a beautiful home on a corner lot backing to the wash with only one neighbor. Enter into the formal living room with soaring ceilings and lots of natural light. Giant open kitchen with breakfast bar, stainless steel appliances, wall mount double ovens and walk-in pantry. Massive family room and loft provides ample room for large family fun. The luxurious master suite has a bonus room perfect for an office or exercise area. The backyard oasis is an entertainers dream. Has pool fencing for child safety. Must see to fully appreciate!

28455 N 67th Drive Peoria, AZ 85383

$1,139,000
4 Beds
4 Baths
4,085 SqFt
Status Active
MLS # 6770625
Property Type Single Family Residence
Price Type --
Highly UPGRADED & CUSTOMIZED Camelot Home in exclusive gated community! 3 bdrms + private office w/built-ins on main living areas on lower level. Huge bonus room(4th bdrm) up, w/wetbar, bar frig, and a 1/2 bath. 2nd bonus rm off garage has mirrored wall, great workout rm, dance/art studio. RARE 4+car garage w/room for boat or ATV, Nice gated private courtyard entrance. Large open kitchen w/island. New custom fireplace wall in living area. Travertine tile flooring. Plantation shutters too! Master has exit door to East facing covered patio with Pergola extension and grilling station. Peek-view of the hills. An extra storage room near back yard and garage for all the extra space you need. Shell shape pool with waterfalls, yard is large, plenty of space to play, landscaped with Turf. MORE!

11268 N Williamsburg Avenue Surprise, AZ 85388

$1,138,995
3 Beds
2.5 Baths
2,656 SqFt
Status Active
MLS # 6753243
Property Type Single Family Residence
Price Type --
Ready in Fall 2024, modern luxury meets elegant design in this stunning quick move-in home. This St. Helena floorplan welcomes you in with a stunning well-appointed foyer. The gourmet kitchen makes a statement with its premium finishes, upgraded cabinets, and stainless steel appliances. Embrace relaxation in the sun-filled great room that is bursting with natural light and is adjacent to the kitchen and casual dining area. The primary bathroom suite offers the perfect getaway with a resort-like shower complete with a sitting area, as well as free-standing tub and walk-in closet. Escape with the family with the home's covered outdoor patio that is enhanced with a fireplace and stunning West facing mountain views.

50 Talia Court Sedona, AZ 86336

$1,137,000
3 Beds
2 Baths
1,923 SqFt
Status Active
MLS # 6754313
Property Type Single Family Residence
Price Type --
Charming Primary OR Getaway Home. NO HOA, STR FRIENDLY, PRIME Sedona Location. Step into a meticulously maintained Cavanaugh Southwest Beauty has SPACIOUS Great Room Living with high ceilings and split floor plan. The impressive rustic entry door adorned with iron nail accents invites you into this open, bright and comfortable single level home. Feel the immediate warmth from the Saltillo tile in foyer and dining area. Kitchen boasts granite counters with full backsplash, Viking SS appliances including fridge and gas oven cooktop/hood vent and a SS two-compartment sink, prep island, pantry, breakfast bar and nook, Custom SW cabinets. Additional option for dining space in Great Room which features recessed lighting and track lighting to showcase artwork. Dual double doors for access to the backyard. Perfect set-up for entertaining guests. Spacious primary bedroom suite has large soaking tub, separate shower, dual vanities, private commode, walk in closet with built-in shelves and bi-level hanger rods for efficiency and extra storage behind door. Guests will enjoy privacy and comfort of the two additional bedrooms with a full bathroom between them. Enjoy the privacy of the Fully Enclosed, level backyard with mature trees and plants along the perimeter. Grab your favorite beverage, relax in the shade from the Juniper tree and take in the amazing dead-on view of Cathedral Rock to the West. Outdoor grilling and dining on the patio is always in season. Plenty of additional patio space for potted plants and yard space for multiple flower/ vegetable garden beds. Large laundry room includes Whirlpool washer and dryer, folding station, extra storage and utility sink. Other features include NEW Lennox HVAC, ecobee thermostat, art niches and much more. Roof replaced in 2021. Close proximity to world-class hiking and biking trails, shopping, golf and all Sedona/VOC amenities, living is easy within this quality-built home with a super-functional floor plan on a large level lot. What are you waiting for? Make this special property yours today!

507 N Spur Drive Payson, AZ 85541

$1,135,000
3 Beds
3 Baths
3,106 SqFt
Status Active
MLS # 6726055
Property Type Single Family Residence
Price Type --
Unique custom home located on a heavily wooded 1 acre lot. Close to 100 large Ponderosa Pines, some 70ft tall, providing shade and seclusion. Main level living with a great room, kitchen, dining room, sunken sunroom, master bedroom and second bedroom. Main level living is mostly solid red oak flooring. Separate bedroom and family room area upstairs. Nice private covered decks. Property is completely fenced with chain link and wrought iron. Large 1000 sq ft workshop that has unlimited uses. It would be a great quilting space, woodworking shop or add water and sewer and have a great guest house. Greenhouse included. Several fruit trees and garden plots on the property. Fireplace in the Great Room and master bedroom. This is a one of a kind home in a great area!

10491 E Meadowhill Drive Scottsdale, AZ 85255

$1,135,000
5 Beds
3.5 Baths
3,466 SqFt
Status Active
MLS # 6781668
Property Type Single Family Residence
Price Type --
This stunning home in gated McDowell Mountain Ranch offers elegance and privacy with 5 bedrooms, 3.5 baths, and no neighbors behind. The open floor plan features high ceilings, large windows, and a bright, airy feel. A chef's dream kitchen awaits, complete with stainless steel appliances, granite counters, and a spacious island. The home also boasts two A/C units, ample storage, and a beautiful backyard with a sparkling pool and covered patio for entertaining or relaxing. Ideally located near Arizona's best hiking and biking trails, this home is a rare blend of luxury and convenience.

9186 S San Pablo Drive Goodyear, AZ 85338

$1,135,000
4 Beds
3.5 Baths
4,314 SqFt
Status Active
MLS # 6703066
Property Type Single Family Residence
Price Type --
A true gem in the desert! This 4300 square foot home is nestled on a premium 1.19 acre lot at the base of the Foothills mountains in the amenity rich community of Estrella Mountain Ranch. Every room of the home on the main level boasts mountain views from the quiet cul-de-sac lot. The chef's kitchen features top of the line appliances including: Viking stainless steel oversized double oven with six burner gas stove top, warming drawer, trash compactor and dual dishwashers. Kitchen features breakfast bar with seating of up to six and is conveniently situated between the living room, eat in kitchen nook, and formal dining room to ensure effortless flow of the home. Home boast a split floorplan featuring soaring 12 foot ceilings and dedicated home office. Master retreat includes oversized bedroom with fireplace, expansive dual master closets and en suite complete with dual vanities, make up counter, separate tub and walk in shower & linen storage. In the basement you will find an additional two bedrooms, bathroom and a bonus living / entertaining space including dry bar complete with mini fridge. The expansive backyard is the epitome of AZ outdoor living and an entertainers paradise that features extended travertine patio, private pool, dual firepits, water feature, private basketball court and a covered BBQ with built in grill & fridge and counterspace fit for a pit master. The coveted community of EMR features two resident centers with fitness centers, restaurants and heated pools alongside breathtaking walking trails and family driven activities monthly. Don't miss out on your opportunity!

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