Why do I need mortgage insurance?

Mortgage insurance is entirely for the lenders protection against losses they might have as a result of a foreclosure. If you have 20% equity or more, then you will not need to pay mortgage insurance.. if you have less than 20%, there are other options such as lender paid MI, where you pick a higher interest rate, and the lender pays your premium, or Split paid Mi where you pay some, and the lender pay some.. There is ZERO benefit to you as a borrower to pay MI.. if you can afford the extra down payment on a purchase, you're better off, since you will get a better interest rate, and you won't have the added cost of MI.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

mortgage insurance is for the protection of the lender in case of default from the borrower, generally you need mortgage insurance if you put less then 20% for down payment.

Mortgage insurance is for the lenders protection. I call it the necessary evil. Simply put, you either put 20% down, or you have to deal with the insurance somehow.

as the others have said, if you can put 20% down then you will not need to deal with the MI however if you cannot then you will have to. Unlike the others, I do believe that there is a benefit to you. Statistics show that loans made with less then 20% down will have a higher foreclosure rate and therefore placing more risk on the lender. The benefit to a borrower is the ability to qualify for a mortgage when they do not have a 20% down payment.

lender protection ONLY over 80% LTV