However, when potential clients find themselves without the traditional 20 percent down, they may assume a new home is out of the question. It is important to clearly explain these alternatives so consumers realize that home ownership now could pay off more handsomely in the future, as opposed to waiting until they have enough saved for the traditional down payment. Though lenders are not required to charge PMI, the vast majority do because home buyers with a down payment of less than 20 percent are statistically far more likely to default on their loans. You can increase the consumers' understanding of PMI as an investment that secures home ownership. PMI is proven.
Home ownership comes more quickly.
MICA also says PMI can help consumers buy homes with only 5 percent down about 10 years sooner than if they'd waited to save a 20 percent down payment. Of course, in this case it is important that the customer be able to afford the larger mortgage payments. PMI can be an investment in the housing market. While customers know that there is no guarantee this will occur, the history of American real estate is positive. PMI triggers a bigger tax break.