Money Matters |
Low down payment mortgages help first-time home buyers

(Brandpoint) - Traditionally, saving up for a 20% down payment has been the largest obstacle for aspiring homeowners and this challenge is even more acute when interest rates drive monthly mortgage payments higher. Despite higher rates cooling home sales last year, hundreds of thousands of first-time homebuyers leveraged private mortgage insurance (MI) to put as little as 3% down to access homeownership.


It would take the average homebuyer 27 years to save for the down payment and closing costs.

According to a report released by U.S. Mortgage Insurers (USMI), 64% of homebuyers who used private MI last year did so to purchase their first homes and to begin building equity, a 6% increase in first-time buyers' share of the market from 2020. Considering a 20% down payment on the national median home price of approximately $425,000 is $85,000, many aspiring homeowners without the resources to make large cash down payments understandably choose private MI. After all, putting 5% down on that same home requires saving only $21,000 in comparison. USMI reports that 35% of homebuyers using private MI in 2023 had annual incomes lower than $75,000.

"Private MI remains one of the most helpful tools available to first-time and low- to moderate-income buyers in the market. Private MI helps borrowers overcome the large down payment barrier to affordably and sustainably qualify for financing and start reaping the benefits of homeownership years earlier," said USMI Board Chairman and Enact President and CEO Rohit Gupta.

In 2023, private MI helped 800,000 buyers purchase homes using low down payment mortgages, and 39 million homebuyers have achieved this cornerstone of the American dream with private MI since it was first introduced. If a 20% down payment were required, it would take the average homebuyer 27 years to save for the down payment and closing costs, three times longer than the time it would take to save for the 5% down payment that is often used with private MI. Fortunately, you don't need a 20% down payment to become a homeowner.

USMI President Seth Appleton described the role that private MI plays for housing affordability and access as "opening the homebuying experience up to working families, including first-time buyers. People do not need to save for 20, 30 and even 40 years to meet the mythical - but not required - 20% down payment threshold to be able to afford their first house; instead, millions of homebuyers have achieved the American dream of homeownership and started building their wealth and equity by using private MI."

Another advantage for homebuyers, according to USMI, is that private MI is a temporary cost; monthly borrower-paid MI can cancel after the homeowner establishes sufficient equity either through regular payments or home price appreciation. When mortgage insurance is canceled, the borrower's monthly overall payment goes down.

There are many financing options for homebuyers to consider. Learn how you might be able to use private MI to start your homebuying process at lowdownpaymentfacts.com, a resource launched by USMI to offer homebuyers low down payment mortgage information and dispel the myth that a 20% down payment is required to become a homeowner.


Subscribe

The Big Picture Archive

NORMAL - Monticello running back Koyie Williams finds an open lane during his team's state title game against Montini on Friday. Williams finished with 32 all-purpose yards in the Sages' 49-8 loss to the Broncos in the Class 3A state title game on Friday. (Photo: Sentinel/Clark Brooks)
Tolono - Members of the Unity football team and student fans celebrate the football team's upset victory over St. Joseph-Ogden at Hicks Field on Saturday. The Rockets advance in the Class 3A bracket to host Nashville next Saturday after defeating the Spartans, 35-7. (Photo: Sentinel/Clark Brooks)


St. Joseph - St. Joseph-Ogden's Brodie Harm and James Barron bring down West Frankfort quarterback Lucas Parker during their first-round IHSA playoff football game. The Spartans earned their 10th win, defeating the visiting Redbirds, 48-0. SJO advances through the bracket to face the Unity Rockets on the road next Saturday at 2pm. (Photo: Sentinel/Clark Brooks)


PEORIA - Unity's Ashlyn Denney runs the first lap of her run at the IHSA Cross Country State Finals in 2023. Without her at Tuesday's Illini Prairie Conference Meet, the 3X consecutive state champion Rockets still dominated the field, taking first place in the team standings with 31 points.

Photo: Sentinel/Clark Brooks


Nick Krisman

TOLONO - Kicker Nick Krisman puts the pigskin through the uprights during St. Joseph-Ogden's quarterfinal playoff game at Hicks Field against Unity on November 12, 2005. The Spartans, who entered the game 10-1 and lost their earlier regular season battle 28-26, fell in another heartbreaking barnburner, 21-20 in double overtime. Unity (13-1) eventually advanced to the Class 3A title game, falling 34-7 to the Bureau Valley Storm (14-0).

Photo: Sentinel/Clark Brooks


CORRECTION: Part of the original caption for this photo was incorrect. It said, "The Spartans, who entered the game 11-0 and had shutout the Rockets 43-0 earlier in the season, fell in a heartbreaking barnburner, 18-14. Rival football nomads, SJO and Unity (9-4) played tough independent schedules that season while looking for new conferences to call home." This was incorrect. The caption above reflects the correct game and moment.


Tayton Gerdes

Tayton Gerdes watches the ball sails away after holding for Lucas Smith during a second-half kick-off in St. Joseph-Ogden's home game against Carterville. The Spartans, who went 5-0 after the 26-20 home victory over the Lions, travel to Bloomington to take on a 3-win, 2-loss Central Catholic team this Friday.

Photo: Sentinel/Clark Brooks


St. Joseph-Ogden's Alex Acosta and Logan Mills celebrate Mills' second-half score on their way to 9-0 shutout over Illini Prairie Conference foe Central Catholic. Acosta led all scorers with four goals and one assist. Mills record four assists during SJO's home match on Tuesday, October 1.

Photo: Sentinel/Clark Brooks

Good spin for Tigers, Urbana tennis team downs St. Joseph at home

Lillian Hall hits the ball back over the next during her match at #2 singles against St.Joseph-Ogden's Madison Clampitt. Hall, a senior, defeated Clampitt, 6-3 , 6-7, 7-4.

Photo: Sentinel/Clark Brooks

URBANA - The Urbana tennis team won five singles matches and all three doubles contests to defeat St. Joseph-Ogden at home Monday. The Tigers were dominant on all nine courts, winning the dual match 8-1.

All but one of the four matches decided by a third-set tiebreaker ended in Urbana's favor. Lillian Hall won the first set 6-3 and dropped the second set 7-6 in her match at No. 2 singles against SJO's Madison Clampitt. Taking an early lead in the tiebreaker, Hall secured the win with a 7-4 finish.

Coming off a 6-1, 6-1 loss to Danville’s Aliya Morgan, Urbana’s Ananyah Tangmunarunkit lost her first set against St. Joseph-Ogden’s Madison Farber at No. 3 singles, 6-3. Regrouping, she frustrated Farber with strong defensive play, running down good shots that could have been winners to take the second set 6-1. Tangmunarunkit, a sophomore, held on to an early lead to win 10-7 in the final set.

The Tigers also won both doubles matches that required an extra set.

Urbana’s Grace Coady and Lillian Hall pulled out the win at No. 1 doubles after defeating St. Joseph-Ogden duo Lily Rice and MaKennah Hamilton, 4-6, 6-2, 10-6.


Ananyah Tangmunarunkit, a sophomore, lines up a short-angled shot during her doubles match with partner Elianna Lee. The Tigers' doubles duo beat St. Joseph-Ogden’s Ella Dieteker and Sara Kearney in a three-setter. Tangmunarunkit's singles matches was also decided after three sets.

Photo: Sentinel/Clark Brooks

At No. 2 doubles, Ananyah Tangmunarunkit and Elianna Lee played an exciting match against St. Joseph-Ogden’s Ella Dieteker and Sara Kearney. The Spartan pair won the first set 6-4, thanks to outstanding net play from Kearney. The Urbana duo regrouped, keeping the ball away from SJO’s best net player to win the second set 6-2. Tied at one set apiece, Urbana won the decider 10-5.

The Spartans’ only victory came at No. 1 singles. In a contentious battle, SJO’s Sami Kelso defeated Urbana’s Grace Coady 3-6, 7-5, 10-5.

The Tigers are back on the courts at Blair Park next Tuesday for their final home match of the season, hosting Central.


Final Score:
Urbana 8 - St. Joseph-Ogden 1

Singles:
Samantha Kelso, SJO def. Grace Coady, Urbana, 3-6, 6-5, 10-5; Lillian Hall, Urbana def. Madison Clampitt, SJO, 6-3 , 6-7, 7-4; Ananyah Tangmunarunkit, Urbana def. Madison Farber, SJO, 4-6, 6-1, 10-7; Elianna Lee, Urbana def. Ainsley Rhoten, SJO, 6-2, 6-2; Gwen McLean, Urbana def. Audrie Helfrich, SJO, 6-0, 6-4; Amani Brown, Urbana def. Avarie Dietiker, SJO, 6-4, 6-2.

Doubles:
Grace Coady - Lillian Hall, Urbana def. Lily Rice - MaKennah Hamilton, SJO, 4-6, 6-2, 10-6; Ananyah Tangmunarunkit - Elianna Lee, Urbana def. Ella Dieteker - Sara Kearney, SJO, 4-6, 6-2, 10-5; Catherine Bretl - Amani Brown, Urbana def. Audrey Benoit - Claire Hartman, SJO, 7-6, 6-0.


St. Joe-Ogden Athletics


More Sentinel Stories



Photo Galleries


Monticello Basketball vs Seneca
January 11, 2025
30 Photos

January 11, 2025
37 Photos

January 11, 2025
31 Photos

January 4, 2025
42 Photos

December 14, 2024
39 Photos

December 7, 2024
27 Photos