MI Helps Borrowers
MI has helped millions become homeowners by enhancing their ability to borrow in an affordable way by reducing the risk of their loans.
Coming up with the required down payment can be one of the biggest hurdles to homeownership. It could take about 20 years for the average firefighter or schoolteacher to save a typical 20 percent down payment.[1]
Requirements for a substantial down payment can be a significant barrier for first-time homebuyers. More than 50 percent of loans covered by MI in the past year were for first-time homebuyers.[2]
In the past year, MI helped nearly 830,000 homeowners purchase or refinance a mortgage. Nearly half of those served by MI were first-time homebuyers and more than 40 percent were borrowers with incomes below $75,000. [3]
Like mortgage interest payments, taxpayers have been able to deduct MI premiums from federal income taxes since 2007. In 2015, 4.1 million taxpayers benefited from deductions for MI. From 2007 to 2014, over 29 million deductions were taken, and nearly $41 billion was deducted from income federal taxes.[4]
Loans with private MI offer borrowers an option that is highly competitive to FHA in terms of pricing.
[1] Center for Responsible Lending
[4] IRS
