Reach a bigger pool of buyers by busting private MI myths
Break through the myths that keep potential buyers on the sidelines
The homebuying process is challenging enough without buyers still believing myths about private mortgage insurance (PMI). These misperceptions add confusion and create unnecessary barriers to buying a home.
Set the record straight by debunking these myths and demonstrating how private MI can be used as a smart financial tool that expands opportunities for your buyers and generates more closings.
MI myth #1
“You have to put 20% down or you shouldn’t buy.”
Reality: PMI enables qualified buyers to purchase a home with as little as 3% down on a conventional loan. Buyers can even use gift funds or down payment assistance (DPA) towards that 3%.
MI myth #2
“PMI is expensive.”
Reality: PMI costs have dropped significantly over time, and PMI is one of the few items in the homebuying process that costs less today (on average) than a couple of years ago. Plus, PMI can be cancelled once 20% home equity is attained.
MI myth #3
“PMI is only for first-time homebuyers.”
Reality: While PMI is a great option for first-time homebuyers, repeat buyers also benefit from it. Leveraging PMI allows them to use some of the profit from the sale of their home for other purposes, like making home improvements, investing in other financial endeavors or buying a more expensive move-up house.
MI myth #4
“PMI only protects the lender, so it’s a waste of money.”
Reality: While it’s true PMI reduces risk for lenders, homebuyers also reap serious benefits. PMI helps them buy a home sooner without having to wait years to save up a 20% down payment. In addition to achieving homeownership sooner, PMI can increase their buying power and expand their cash flow options.
MI myth #5
“Homebuyers already know about PMI.”
Reality: A 2025 survey by NerdWallet showed that 66% of millennials and 65% of Gen Zers still believe lenders require a 20% down payment to buy a home.* That misbelief means there are many potential buyers sitting on the sidelines that you can help today by sharing your knowledge and expertise!
*Source: Nerdwallet's 2025 Home Buyer Report
"It could take 25 years for the average household earning $83,730 (national median income) to save up a 20% down payment – plus closing costs – for a $419,300 home, the median sales price for a single-family home in 2025."
U.S. Mortgage Insurers' MI in Your State Report, 2026
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