Mortgage Insurance (MI) is often required for loans that have a down payment of less than 20% of the property's purchase price. It provides lenders with financial assurance that they will be compensated if the borrower defaults on the loan. Mortgage insurance can be either private (PMI) or government-backed, depending on the type of loan. Borrowers typically pay a monthly premium or a one-time upfront premium, which can be rolled into the mortgage. The specific terms and rates for mortgage insurance can vary significantly based on the lender and borrower’s credit profile.