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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4397 W Horsenettle Drive San Tan Valley, AZ 85144

$549,900

4 Beds

2.5 Baths

3,001 SqFt

Status Active

MLS # 6781557

Property Type Single Family Residence

Price Type --

Welcome to this gorgeous 4-bedroom, 2.5-bathroom home located in the San Tan Ridge community. This property offers an exceptional floor plan with oversized bedrooms, a spacious loft, bonus room downstairs, formal dining area and trendy paint tones. The primary bedroom offers ample light, a large walk-in shower and closet. The kitchen opens to the living area, creating an ideal space for entertaining. Step outside to your private backyard paradise. Surrounded by lush tropical plants, featuring a heated swimming pool with views of the San Tan Mountains. The built-in BBQ and commercial-grade misters offer the perfect setting year round. In addition this home has owner owned solar, water softener, RO system, 3 car tandem garage, and is pre wired for a hot tub outside.

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305 W Alamo Drive Chandler, AZ 85225

$549,900

4 Beds

2 Baths

2,025 SqFt

Status Active

MLS # 6782452

Property Type Single Family Residence

Price Type --

Beautifully renovated home featuring the latest in design and comfort. This warm and inviting property is punctuated with all the best of Southwest style combined with the comforts of contemporary design. Gorgeous master bedroom welcomes you to rest and rejuvenate. Plenty of space lets you and family stretch out and relax. Open concept kitchen makes family dinners special every day! Come home soon....

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13411 W Los Bancos Drive Sun City West, AZ 85375

$549,900

3 Beds

2 Baths

2,143 SqFt

Status Active

MLS # 6785098

Property Type Single Family Residence

Price Type --

You will love this 3 bed, 2 bath home on corner lot in Corte Bella. Welcome to this spacious floor plan w/ lots of natural light, crown molding, plantation shutters, granite countertop, new carpet and paint thought-out. The eat-in kitchen has a breakfast bar, pantry, glazed cabinets & huge island. It's also open to the generous living space. The owner's suite features a large bay window, separate tub & shower, dual sinks, seated vanity & walk-in closet. The rear yard has a large, covered patio w/ relaxing views. Spacious laundry room with custom storage cabinets & oversized 2 car garage w/ attached cabinets. Located in the highly desired & gated Corte Bella community w/ golf course, sports courts, pool, fitness center, restaurant & day spa.

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25799 S 226th Street Queen Creek, AZ 85142

$549,900

4 Beds

2.5 Baths

2,407 SqFt

Status Active

MLS # 6606963

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This exquisite single-family residence boasts 4 beds and 2.5 bath, providing ample space for comfortable family living & entertaining. Step inside to discover a well-appointed interior that combines modern elegance with timeless design. The open-concept floor plan seamlessly connects the living, dining, & kitchen areas, creating a warm & inviting atmosphere. The kitchen is a chef's delight, featuring top-of-the-line appliances, granite countertops, & a generous island that serves as the focal point for culinary creations & casual gatherings. The four bedrooms are thoughtfully designed, offering privacy & comfort to all occupants. Outside, the property continues to impress with a huge backyard space. It's a blank canvas awaiting your personal touch. Built in 2021 & situated minutes away from Queen Creek's entertainment hub, you'll enjoy the convenience of nearby amenities, excellent schools, & easy access to shopping, dining, movie theaters and a variety of entertainment options. This property truly offers the best of both worlds - a peaceful suburban retreat with a front-row seat to all the entertainment you desire. surrounded by lush green areas, amazing playgrounds, & a super cool community pool area!

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44560 W Copper Trail Maricopa, AZ 85139

$549,900

4 Beds

2.5 Baths

3,054 SqFt

Status Active

MLS # 6707658

Property Type Single Family Residence

Price Type --

SELLER OFFERING RATE BUYDOWN Resort living at its finest in Maricopa. Located in the Cobblestone Farms neighborhood. The expansive interior shines with natural light, creating a welcoming ambiance throughout. Enter through a custom iron door where a chef's kitchen awaits, boasting top-tier appliances, perfect for culinary enthusiasts & entertaining guests alike. This luxurious home offers 4 spacious bedrooms, including a magnificent owner's retreat with a owners bath including a full tiled shower, freestanding tub and custom sinks. Retreat to the spacious bedrooms, each with a walk in closet. You will also find a separate den/office & loft, providing versatile spaces for work & play. Outside, the meticulously landscaped backyard features a sparkling pool with a water fall, a hot tub while enjoying Arizona's stunning sunsets. Lush green grass and palm trees makes this a home a private oasis. Parking is never an issue with the convenience of an extra parking slab and RV Gate, providing ample space for vehicles & storage. Additional features of this remarkable property include a low maintenance front yard and exterior stone features. This is a rare find that offers the perfect blend of luxury & comfort. Don't miss the opportunity to own this remarkable property. Your new home has been lovingly cared for, allowing you to move right in & start creating memories.

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12926 S 218th Avenue Buckeye, AZ 85326

$549,900

4 Beds

3 Baths

2,100 SqFt

Status Active

MLS # 6713249

Property Type Single Family Residence

Price Type --

AMAZING NEW HOME WITH A TASTE OF COUNTRY LIVING. Check Out This Flat Prime Rural Horse Proberty That Screams Arizona living At it Finest. This NEW 2024 Built Home Is in Magical Buckeye Arizona And Is the perfect Size At 2,100 Square Feet With 4 Bedrooms & 3 Bathrooms. The Home Sits On A Flat Acre of Land And Is Perfect For Both Raising Horses Or A Family. Step Through The Double Front Doors into Your Main Living Space with Chefs Kitchen And Large Pantry. Clean Wood Looking Composite Flooring Through out With No Carpet. All Three Bathrooms have Been Updated With Custom Tile Showers. Bedrooms Have Added Custom Storage/Shelving and Multiple Walk-in Closets. Spray Foam Insulation Along The Roof In The Attic Make this Home Extra Energy Efficient. The Builder Spared No Expense On This Semi Custom Home. Rural Living At Its Finest That Includes, Mountain Views, Shared Well, Private Septic, Perimeter Fence, No HOA, Covered Patio and A Oversized 2 Car Garage.

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3218 N Ravine -- Mesa, AZ 85215

$549,900

3 Beds

2 Baths

1,868 SqFt

Status Active

MLS # 6752209

Property Type Single Family Residence

Price Type --

No HOA! This charming 3-bedroom, 2-bath home features elegant travertine floors throughout and plantation shutters for a touch of sophistication. The central vacuum and water softener make for carefree maintenance and vaulted ceilings enhance the open, airy feel, while the play pool in the backyard offers a perfect retreat. The fireplace in the family room, breakfast bar seating in the kitchen, ceiling fans throughout the home & 220V access in the garage for EV charging are just a few of the features that make this the home of your dreams. Located in a desirable Mesa neighborhood, this home blends style and functionality seamlessly and is ideal for both relaxation and entertaining. It's a true gem in a prime location with easy access to the 202 freeway, shopping and schools.

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9632 E Olla Avenue Mesa, AZ 85212

$549,900

4 Beds

2 Baths

2,308 SqFt

Status Active

MLS # 6730708

Property Type Single Family Residence

Price Type --

Your Dream Home Awaits! Discover the ideal blend of modern upgrades and cozy living in this stunning property, featuring 4 spacious bedrooms and 2 beautifully appointed bathrooms. This is a must-see! Exterior & Pool. Enter your private oasis, highlighted by a meticulously maintained pool equipped with a new speed pump, floor pop-ups, and a new filter. The PebbleTech resurfacing and fiber optic lighting create a captivating ambiance for evening swims. Freshly painted in 2022, the exterior presents a modern and welcoming aesthetic. Interior Upgrades: Inside, enjoy new tile and carpet flooring throughout, complemented by fresh interior paint. The primary bathroom has been exquisitely remodeled, showcasing a luxurious new shower and cabinet. With newer AC units installed in 2020 With newer AC units installed in 2020 and a new thermostat, year-round comfort is guaranteed. Additional Features: A new roof was installed in 2021, providing durability and peace of mind. The garage comes equipped with a utility door and storage racks for added convenience. An RV gate, backyard shed, and parking slab offer ample space for storage and vehicles. Elegant French doors add a sophisticated touch and easy access to outdoor spaces. Location: This home is ideally located with no neighbors behind, surrounded by single-level homes for added privacy and tranquility. Conveniently situated near schools and major highways (LOOP 202 & US 60), your commute will be a breeze. Don't miss the chance to make this exquisite property your new home. Experience all the wonderful features this home has to offer!

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18663 W Vogel Avenue Goodyear, AZ 85338

$549,900

5 Beds

3.5 Baths

3,543 SqFt

Status Active

MLS # 6744673

Property Type Single Family Residence

Price Type --

****MOTIVATED SELLER***** BRING YOUR OFFERS AND Don't miss this large, ready to move into 2 story home at the end of a peaceful street. This stunning 5 bed 3.5 bath house offers all the space and privacy you might need. Rv gate leading to a HUGE backyard, 11,398 sq ft. of big for you to add a pool or make it all you dreamed of. The main floors primary suite is great for accessibility, and seclusion from the other bedrooms. Open floor plan with lots of natural light and space for everyone. Kitchen has granite counters, stainless Steel appliances, walk in pantry, and 42'' upper cabinets with beautiful crown molding. Front Office and formal dining room are in soaring vaulted ceilings with tons of windows and light pouring in. The Kitchen is a chef's dream, featuring granite countertops, stainless steel appliances, a walk-in pantry, and 42 upper cabinets with elegant crown molding. The front office and formal dining room have soaring vaulted ceilings and an abundance of windows. The previous owners smartly converted the tandem portion of the 3 car garage into a versatile office or workshop, with a sperate exterior entrance. This thoughtful modification adds to the home's square footage and provides a functional space for remote work or hobbies. With fresh interior and exterior paint, newer appliances, and pre-wired surround sound, this home is in excellent condition and ready for its new owners. Don't let this opportunity pass you by.

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1618 E Greenway Street Mesa, AZ 85203

$549,900

3 Beds

2 Baths

2,326 SqFt

Status Active

MLS # 6741820

Property Type Single Family Residence

Price Type --

This stunning home features a complete remodel with raised ceilings, newer wood-look tile flooring, and an open floor plan. NO HOA. The home boasts two fireplaces, adding warmth and charm. The kitchen offers a timeless and clean look with white cabinets and butcher block countertops, while a custom kitchen island adds valuable counter space and storage. Recent upgrades include a new roof, HVAC duct work, and new windows, ensuring comfort and energy efficiency. New driveways and walkways enhance curb appeal and accessibility. An additional driveway with an RV gate provides easy access to the huge backyard, perfect for recreational vehicles or additional parking. This opens up possibilities for outdoor activities. With a sparkling pool and a new oversized custom pergola.

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16324 N 73rd Drive Peoria, AZ 85382

$549,900

3 Beds

2.5 Baths

2,082 SqFt

Status Active

MLS # 6752817

Property Type Single Family Residence

Price Type --

Move In Ready 3 bedroom + den/office, 2.5 baths, 2,082 square foot home with a gorgeous backyard and salt water pool! Beautiful great room with soaring ceilings, tile, kitchen boasts granite countertops, expresso wood cabinets, backsplash, gas stove, canned lighting, ample cabinets and counter space, large master suite with separate tub & shower, dual vanities, water closet, huge walk-in closet, 1 bedroom on first floor, second floor den/office is perfect for working from home, ceiling fans in all bedrooms, 2 car garage has epoxy flooring, 12 foot RV gate, California driveway in front of RV gate, backyard oasis is perfect for relaxing or entertaining, view lot that backs to the community park, covered patio with fans and TV, sunshades, extended paver patio, side entrance from garage to backyard with security door, exterior painted in 2022, AC replaced in 2017, Ethernet ports in main rooms (front bedroom/office, great room, loft), located close to the 101, Arrowhead Mall, Peoria Sports Complex, shopping, entertainment, see this home today!

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921 E Becker Lane Phoenix, AZ 85020

$549,900

3 Beds

3 Baths

1,925 SqFt

Status Active

MLS # 6747960

Property Type Single Family Residence

Price Type --

ELEGANCE STYLE CONVENIENCE Discover the seamless blend between modern and classic in this Phoenix home. Featuring breathtaking mountain views from the 2nd story master balcony, this stunning home offers a sprawling pie-shaped backyard. Inside, inviting living space with vaulted ceilings and a choice of master bedroom on either the lower or upper floor. Enjoy the warmth of hardwood flooring and tile. Gather around the Saltillo accented beehive fireplace in the great room. The kitchen shines with white cabinets, granite countertops, new appliances including dishwasher, stove, microwave and even our very own wine fridge. Cul de sac lot surrounded by well maintained homes and yards. Nestled into seclusion yet close to all conveniences include the Hilton Tapatio Cliffs resort

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