The borrower gets the insurance premium added to the mortgage balance, and the insurance protects the lender in case of the borrower's default. (biggerpockets.com)
This type of insurance protects the lender in case you are unable to repay the loan amount and default on the mortgage. (pennymacusa.com)
Because mortgages with smaller down payments pose a greater risk for the lender, they require the borrower to pay for mortgage insurance, which protects the lender in case of default. (valuepenguin.com)