March 30, 2026 Enabling the American Dream: PMI Saved First-Time, Working-Class Homebuyers $258.1 Billion In Down Payments Due at Closing From 2020-2024

March 30, 2026

Cost of Private MI, the Most Powerful Financial Tool for Low Down Payment Homebuyers, Also Declined 25% in Recent Years As Measured by In-Force Premium Yields

WASHINGTON - U.S. Mortgage Insurers (USMI), the association representing the nation's leading private mortgage insurance (MI) companies, released new data showing that in the five-year period between 2020 and 2024, private MI collectively saved American homebuyers more than $258 billion in down payments due at closing, enabling the American Dream for millions of first-time and working-class homebuyers with as little as three percent down, compared to a larger 20% down payment.

For nearly 70 years, the private MI industry has supported access to affordable homeownership for borrowers without large down payments, allowing them to come to the closing table with tens of thousands of dollars less in cash on average and allowing them to access homeownership decades sooner. USMI's analysis examined the number of homeowners using private MI, average loan amount, and typical down payment for borrowers using loans with private mortgage insurance in each state between 2020-2024 to estimate a total overall savings generated of $258.1 billion during that period.

USMI's "50 States of Low Down Payment Homebuying " report, released last summer, found that on average, it could take 26 years for a household earning the national median income in 2024 to save 20% plus closing costs for a home at the median national sales price of $412,500. However, with the help of private MI, that time decreases by 65% to purchase a home with 5% down.

"As we mark America's 250^th birthday this year, our data show that private MI saved Americans over $250 billion in cash due at the closing table in just five years alone, making homeownership more affordable and allowing Americans to become homeowners years sooner," said Seth Appleton, president of USMI. "Private MI is a powerful financial tool that saves prospective homeowners tens of thousands of dollars at closing, and, as an added benefit, eligible homeowners can once again deduct MI premiums from their taxes thanks to the One Big Beautiful BillAct."

Starting in tax year 2026, qualifying low down payment homebuyers will once again be able to deduct mortgage insurance premiums on their federal taxes, providing new homebuyers with even more benefits. In 2021, the last year this deduction was previously available, 1.3 million homeowners claimed this deduction, for an average of nearly $2,400 per household.

In addition, private MI premium rates have decreased by 25% since 2017 based on publicly reported in-force premium yields, driven by the increased use of dynamic risk-based pricing and savings passed along to borrowers from the reduced corporate tax rates delivered by the Tax Cuts and Jobs Act signed into law during President Trump's first term. This trend stands in stark contrast to other costs associated with homeownership, including homeowners insurance premium rates and utility rates.

Prospective homebuyers interested in how private MI can help them save money and achieve the American Dream sooner can learn more at LowDownPaymentFacts.com.

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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org .