MI talking points

It could take 27 years for a middle-class family earning the national median income of $74,580 to save 20% for a down payment on a $394,100 home, the median sales price for a single-family home in 2023.¹

With MI, you can buy a house sooner with as little as a 3% down payment. More than 800,000 borrowers used MI in 2024 to obtain mortgage financing.²

Waiting to save a 20% down payment can cost you financially. While waiting, you miss out on building equity and by the time you have enough money saved, home prices will likely have increased.

You may be wondering how much you will need to pay for MI. Most borrowers choose a monthly premium plan. The actual cost varies based on your loan amount and other factors. The Buy Now vs. Wait Calculator can give you a general sense of the cost.

Private MI is generally a temporary expense and can usually be cancelled once you have 20% equity in your home based on the original purchase price.

Beginning in tax year 2026, qualified homeowners can deduct their MI premiums from their federal income taxes.

Let’s run the numbers together.

Even if you have a 20% down payment saved, you may want to consider using some of that money in a strategic way that allows you to buy a larger or more desirable home.

For example, say you have $40,000 in savings for a down payment. Instead of using the full amount for a 20% down payment on a $200,000 house, you could put 10% down ($40,000) on a larger or more expensive home that costs $400,000.

If you’re planning to put 20% down and you’re concerned about outgrowing the homes available in your price range, you may want to buy a bigger home instead that will accommodate your growing family. Doing this means you could avoid the cost and hassle of moving in the future.

Home prices generally rise. Being able to buy more house now – at today’s prices – may save you money in the long run. The larger or more expensive home may cost even more in the future.

You may be wondering how much you will need to pay for MI. Most borrowers choose a monthly premium plan. The actual cost varies based on your loan amount and other factors. The Buy Now vs. Wait Calculator can give you a general sense of the cost.

Private MI is generally a temporary expense and can usually be cancelled once you have 20% equity in your home based on the original purchase price.

Beginning in tax year 2026, qualified homeowners can deduct their MI premiums from their federal income taxes.

Let’s run the numbers together.

Even if you have enough money saved for a 20% down payment, you may want to consider making a smaller down payment so you have money left over for other things, such as home improvements, credit card debt or an emergency fund.

There are expenses to consider after you buy a home. In the first year, the average new homeowner spends approximately $14,000 on things like updates (paint, flooring, window treatments, etc.), appliances, furniture or yard equipment.³

Using MI is especially helpful if you buy a fixer-upper and don’t have another source of funds for repairs.

Having a rainy-day fund is an important safety net as a homeowner. If you were to lose your job, your savings could help you to pay your monthly mortgage payment while seeking employment.

You may be wondering how much you will need to pay for MI. Most borrowers choose a monthly premium plan. The actual cost varies based on your loan amount and other factors. The Buy Now vs. Wait Calculator can give you a general sense of the cost.

Private MI is generally a temporary expense and can usually be cancelled once you have 20% equity in your home.

Beginning in tax year 2026, qualified homeowners can deduct their MI premiums from their federal income taxes.

Let’s run the numbers together.

¹ U.S. Mortgage Insurers' MI in Your State Report, 2024; ² USMI.org, 2025; ³ Zillow, 2025