There are loans out there that has the lender pay for the PMI insurance. It is built into the rate. PMI is a benefit for the lender in case of default, and for the borrower in order to get a loan. There are other ways to put less than 20% down and not have PMI, such as a Home Equity Line if you only have 10% down. I currently have a 1% down payment loan, so really anyone with a decent income and credit score can get approved.

A borrower with insufficient funds for a downpayment must endure the cost of PMI. It actually benefits the insurer as the odds are against a payout!

It provides insurance for the lender, very little benefit for the borrower.

it only benefits the lender.....

PMI benefits the lender, not the borrower. It only costs the borrower.

It benefits the investors.

It benefits the lender

It's definately not a benefit to the buyer. The bank is ready to foreclose on the poor buyer before the ink has dried on the note.

PMI benefits the investor and lender. It costs the borrower money up-front, monthly or both.

PMI offers a tremendous benefit to buyers & lenders

For buyers - without PMI, mortgage loans with less than 20% down would be unavailable, or would come at extremely high rates/costs to compensate for lender/investor risk

For lenders/investors, their risk of lending with less than 20% equity is covered by the insurance company so they experience less loss in the event of a foreclosure.

While going to real estate school my suggestion is to find a trusted loan officer and offer to take him to lunch and pay for it in excahnge for learning the mortgage end of the business. It will put you ahead of your fellow students.

PMI does not benefit the borrower, IMHO.

Benefit the lender all the time, don't forget that.

Mortgage insurance is intended to benefit (protect) the lender.  It is required for the buyer in order to get the loan on low downpayment loans.  The only real benefit to the buyer is the ability to qualify for the loan.

Others have answered.

I have seen it where the lender pays the rate but the interest is much higher. I have also seen a prepaid fee where it was paid up front.  It only benefits the lender in the end

The benefit is typically to those on the receiving end of the money!

I'm sure it is somewhere there hiding...:) I'd suggest to read fine print very carefully. 

I suspect that it is mainly just a way for lenders to charge a little extra.

You would need to read the mortgage insurance contract in order to determine the benefits.

It ONLY benefits the lender ... Period. End of story. 

Seana Johnson - what the ads mean is that there will be no monthly PMI payments added to the mortgage even if you put less than 20% down.  Movement Mortgage & others pay the PMI upfront for the buyer as a lure/package perk.

Money making racket for the lender.

 We saw in the last real estate crisis where our clients he and That this insurance didn't help them a bit to keep them from foreclosure. I cannot think of any good things except that it's required on most loans....

Seana Johnson - let the buyer decide what is the ultimate cost to them.

Select the plan that best meets the need of your client.

It may be a requirement of the lender for some buyers to get a mortgage, but the only people who actually "benefit" would be the lender who collects money ever month for the insurance.

It only benefits the lender. 

I believe it only benefits a lender, not a borrower

Mortgage insurance ONLY covers the lender. Generally cheaper to do an 80 10+10+

Mortgage insurance is a benefit for the lender should the borrower default.

There is no benefit to the borrower --- only the lender.

Seana Johnson PMi protects the lender in the event the borrower defaults.