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started building their wealth and equity by using private MI."
Another advantage for homebuyers, according to USMI, is that private MI is a temporary cost; monthly borrower-paid MI can cancel after the homeowner establishes sufficient equity either through regular payments or home price appreciation. When mortgage insurance is canceled, the borrower's monthly overall payment goes down.
There are many financing options for homebuyers to consider. Learn how you might be able to use private MI to start your homebuying process at lowdownpaymentfacts.com, a resource launched by USMI to offer homebuyers low down payment mortgage information and dispel the myth that a 20% down payment is required to become a homeowner.
the benefits of homeownership years earlier," said USMI Board Chairman and Enact President and CEO Rohit Gupta.
In 2023, private MI helped 800,000 buyers purchase homes using low down payment mortgages, and 39 million homebuyers have achieved this cornerstone of the American dream with private MI since it was first introduced. If a 20% down payment were required, it would take the average homebuyer 27 years to save for the down payment and closing costs, three times longer than the time it would take to save for the 5% down payment that is often used with private MI. Fortunately, you don't need a 20% down payment to become a homeowner.
USMI President Seth Appleton described the role that private MI plays for housing affordability and access as "opening the homebuying experience up to working families, including first-time buyers. People do not need to save for 20, 30 and even 40 years to meet the mythical - but not required - 20% down payment threshold to be able to afford their first house; instead, millions of homebuyers have achieved the American dream of homeownership and started