How does mortgage insurance benefit a borrower and a lender?

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Rainmaker
1,712,776

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

It gets them a loan.

Feb 16, 2017 05:17 AM

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Teri Pacitto

Westlake Village, CA
Ron and Alexandra Seigel

Carpinteria, CA
Carol Williams

Wenatchee, WA

Rainer
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Dennis Swartz

Full Circle Property Management - Columbus, OH

MBA, GRI...experience counts!

No benefits to a borrower, protects lender somewhat in a foreclosure.

Feb 16, 2017 03:13 AM

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Inna Ivchenko

Encino, CA
Carol Williams

Wenatchee, WA
Tony and Suzanne Marri...

Scottsdale, AZ

Rainmaker
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Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

abby tiscareno Mortgage insurance benefits the lender in case of default. I guess you could say it benefits the borrower by allowing them to put a lesser amount of downpayment.

Feb 16, 2017 06:23 AM

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Inna Ivchenko

Encino, CA
Carol Williams

Wenatchee, WA

Rainmaker
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Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

It does not benefit the borrower directly, it is strictly to benefit the lender if the buyer defaults and gets foreclosed on.

Feb 16, 2017 05:30 AM

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Carol Williams

Wenatchee, WA
Scott Godzyk

Manchester, NH

Rainmaker
2,221,377

Anthony Acosta - ALLATLANTAcondos.com

Harry Norman, REALTORS® - Atlanta, GA

Associate Broker

Protection

Feb 16, 2017 05:20 AM

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Carol Williams

Wenatchee, WA
Anthony Acosta - ALLAT...

Atlanta, GA

Rainmaker
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Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

This is a good question to ask the lender.

Feb 16, 2017 06:08 AM

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Ron and Alexandra Seigel

Carpinteria, CA

Rainmaker
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Annette Lawrence , Palm Harbor, FL 727-420-4041

ReMax Realtec Group - Palm Harbor, FL

Making FLORIDA Real Estate EZ

Mortgage insurance is an instrument that allows lender to escape the consequence of faulty lending practices. We learned this lesson a few years ago and the world economy took a hit because of Bank of America.

The bank behaves badly, the taxpayer pays the bill.

Nothing has changed.

Benefit the borrower? No.

By the way Abby, do you currently own any real estate?

Feb 16, 2017 05:23 AM

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Carol Williams

Wenatchee, WA

Rainmaker
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Wayne Martin

Wayne M Martin - Chicago, IL

Real Estate Broker - Retired

Benefit to buyer is lower down payment. Benefit to lender is some protection from loss in event of foreclosure

Feb 16, 2017 04:39 AM

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Carol Williams

Wenatchee, WA

Rainmaker
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Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered.

Feb 16, 2017 03:49 AM

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Teri Pacitto

Westlake Village, CA

Rainmaker
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Nina Hollander, Broker

Coldwell Banker Realty - Charlotte, NC

Your Greater Charlotte Realtor

No benefit to borrower.

Feb 16, 2017 03:33 AM

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Ron and Alexandra Seigel

Carpinteria, CA

Rainmaker
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Kathleen Luiten

Resort and Second-Home Specialist - Princeville, HI

Kauai Luxury Ocean Home Sales

Protects the lender in case of default, may be required for the borrower to get financing.

Feb 17, 2017 01:49 PM

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Rainmaker
1,505,913

Ryan Huggins - Thousand Oaks, CA

https://HugginsHomes.com - Thousand Oaks, CA

Residential Real Estate and Investment Properties

Benefits the lender.

Feb 17, 2017 09:13 AM

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Rainmaker
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Roy Kelley

Retired - Gaithersburg, MD

The insurance enables financing and provides protection.

Feb 17, 2017 07:01 AM

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Rainmaker
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Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

abby tiscareno - well, buyers get mortgage and lenders get a client!

Feb 16, 2017 10:23 PM

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Rainmaker
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Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

Mortgage insurance protects the lender.

Feb 16, 2017 09:52 PM

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Rainer
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Melissa Jackson REALTOR

Trinity Premier Properties - Azle, TX

Helping You Make The Right Move

Protects lender if borrower fails to pay.

Feb 16, 2017 09:39 PM

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Rainmaker
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Diana White-Pettis

Bennett Realty Solutions - Upper Marlboro, MD

GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

It only protects the lender in case of buyer default.

Feb 16, 2017 08:09 PM

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Ambassador
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Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Covers the lenders butt, and puts a few extra bucks in their pocket, allows the borrower to get the loan.

Feb 16, 2017 07:47 PM

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Rainmaker
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Inna Ivchenko

Barcode Properties - Encino, CA

Realtor® • GRI • HAFA • PSC Calabasas CA

The only benefit for a borrower: financing. It mostly protects a lender in a case of default.

Feb 16, 2017 06:49 PM

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Rainmaker
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Debbie Laity

Cedaredge Land Company - Cedaredge, CO

Your Real Estate Resource for Delta County, CO

It's an extra fee for the buyer, but protection for the lender should the buyer get foreclosed on.

Feb 16, 2017 06:45 PM

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Rainmaker
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FN LN

Toronto, ON

There are several types of mortgage insurance. Which type are you referencing?

Feb 16, 2017 09:10 AM

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Rainmaker
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Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

it only of benefit to the lender.... if the borrower defaults....

Feb 16, 2017 09:06 AM

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Rainmaker
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Olga Simoncelli

Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT

CONSULTANT, Real Estate Services & Risk Management

Borrower gets the house; lender books a loan.

Feb 16, 2017 08:49 AM

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Rainmaker
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Paul S. Henderson, REALTOR®, CRS

Fathom Realty Washington LLC - Tacoma, WA

South Puget Sound Washington Agent/Broker!

lender

Feb 16, 2017 08:26 AM

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Kathleen Daniels, Probate & Trust Specialist

KD Realty - 408.972.1822 - San Jose, CA

Probate Real Estate Services

It does not benefit the borrower directly. It benefits the lender as protection if the borrower defaults on the loan. Borrowers who have to pay MI benefit because they can buy a home with little down.

Feb 16, 2017 08:06 AM

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Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

Only the Lender.

Feb 16, 2017 07:05 AM

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Carol Williams

Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA

Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

The only benefit to the borrower is that it satisfies a condition to get the loan approved. The mortgage insurance itself is for the benefit of the lender in case of default by the borrower.

Feb 16, 2017 07:03 AM

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Rainmaker
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Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

It has been answered very well. A

Feb 16, 2017 07:02 AM

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Rainmaker
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Michael J. Perry

KW Elite - Lancaster, PA

Lancaster, PA Relo Specialist

It helps protect the lender in case of default

Feb 16, 2017 05:17 AM

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Rainmaker
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Harry F. D'Elia III

WEDO Real Estate and Beyond, LLC - Phoenix, AZ

Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

ask insurance broker this quetion

Feb 16, 2017 04:33 AM

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Rainmaker
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Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Haven Express @ Keller Williams Arizona Realty

Dennis Swartz nailed this one!

Feb 16, 2017 03:55 AM

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No benefits to a borrower, protects lender somewhat in a foreclosure.
abby tiscareno Mortgage insurance benefits the lender in case of default. I guess you could say it benefits the borrower by allowing them to put a lesser amount of downpayment.
It does not benefit the borrower directly, it is strictly to benefit the lender if the buyer defaults and gets foreclosed on.
Mortgage insurance is an instrument that allows lender to escape the consequence of faulty lending practices. We learned this lesson a few years ago and the world economy took a hit because of Bank of America.

The bank behaves badly, the taxpayer pays the bill.

Nothing has changed.

Benefit the borrower? No.

By the way Abby, do you currently own any real estate?
Benefit to buyer is lower down payment. Benefit to lender is some protection from loss in event of foreclosure
Protects the lender in case of default, may be required for the borrower to get financing.
abby tiscareno - well, buyers get mortgage and lenders get a client!
Covers the lenders butt, and puts a few extra bucks in their pocket, allows the borrower to get the loan.
The only benefit for a borrower: financing. It mostly protects a lender in a case of default.
It's an extra fee for the buyer, but protection for the lender should the buyer get foreclosed on.
There are several types of mortgage insurance. Which type are you referencing?
it only of benefit to the lender.... if the borrower defaults....
It does not benefit the borrower directly. It benefits the lender as protection if the borrower defaults on the loan. Borrowers who have to pay MI benefit because they can buy a home with little down.
The only benefit to the borrower is that it satisfies a condition to get the loan approved. The mortgage insurance itself is for the benefit of the lender in case of default by the borrower.