November 10, 2026 Private MI Saved Americans Hundreds of Billions of Dollars, Helped Them Achieve Homeownership Years Sooner

Seth Appleton: Those are both incredibly important points. How do you see the role of private MI evolving, given ongoing concerns about affordability across so many facets of American life, like energy costs, groceries, or taxes? Where does private MI fit into the conversation?

Tim Mattke: Affordability is certainly an issue related to many different aspects of how people live today, and I would say that private MI is more powerful than ever on that front. Private MI premium costs have declined by roughly 25% since 2017, so it's one of the few costs that is actually going down in today's world. So, not only can families get into homes sooner, we've also focused on supporting a manageable monthly cost for them - which is the second thing many people consider when they're planning to buy a home.

Not only is that cost manageable, it's also temporary. By law, private MI automatically terminates once the loan balance is scheduled to reach 78% of the home's original value, and in certain circumstances can be canceled even earlier. After that, the homeowner's monthly mortgage payment goes down, putting money back in their pocket.

It's also worth pointing out a recent change that provides another benefit to homeowners. Thanks to the Working Families Tax Cuts, eligible homeowners will once again be able to deduct the premiums they pay to private MI companies, as well as government agencies, on their federal income taxes beginning next spring. That's powerful for homeowners who are using private MI to get into their homes. In fact, in 2021, the last year the deduction was previously available, the average deduction was more than $2,300 per household. That's meaningful dollars in people's pockets, and it means that the benefits of private MI aren't just felt at the closing table through a lower down payment. They can also benefit homeowners for years.

Seth Appleton: I'm glad you brought that up and mentioned the benefits at the closing table. USMI recently released its annual look at how Americans across the country used private MI in 2025, which found that more than 800,000 households accessed homeownership with the help of private MI last year. Beyond the number of people helped, another important finding is that private MI saved those families more than $35 billion in down payment costs due at closing. What's your reaction to those figures, and what do they mean for individual families and homebuyers?

Tim Mattke: First off, $35 billion is a massive number. It speaks to the scale and the broad impact that we have. But as you said, I really like to think about it at the borrower level. At that level, on average, that means they saved an estimated $48,000 by using private MI rather than saving up for a 20% down payment. Think about what $48,000 means to a family. It could be a new car, it could be college tuition, or it could be a head start on renovations to your home - like the story I mentioned earlier.

It also demonstrates what a powerful tool private MI is for everyone across the country. It's not just a certain geography where MI is important. Families continue to turn to private MI to help them achieve homeownership sooner with a low down payment in every state in the country.

I also think about what it means in terms of time saved. How long would it take to save up an extra $48,000 to reach that 20% down payment? For many people, it could take years or even decades. Instead, you can put 3% down and start building equity and generational wealth through your home much sooner. That's really the power of private mortgage insurance.

Seth Appleton: Tim, thank you for your leadership at MGIC and here at USMI, and thanks for your time today.

Tim Mattke: Thanks, Seth. It was a pleasure.