What are the benefits of private mortgage insurance?

Private mortgage insurance (PMI) allows borrowers to obtain a mortgage with a lower down payment, typically less than 20 of the home's value. This can make homeownership more accessible to those who may not have enough savings for a larger down payment. Additionally, PMI protects lenders in case the borrower defaults on the loan, reducing the risk for the lender and potentially leading to lower interest rates for the borrower.