Mortgage insurance helps lenders protect against losses if borrowers default on their mortgage payments. It protects lenders from the risk of non-payment and helps ensure that borrowers can afford to make their payments. Mortgage insurance can reduce the amount of money a lender needs to put down as a down payment and allows lenders to offer more competitive mortgage rates. Mortgage insurance also helps lenders to recoup some of the costs associated with a loan if the borrower defaults. This helps lenders to protect their investments and reduce the amount of money they might lose if the borrower is unable to pay back the loan. With mortgage insurance, lenders can offer more competitive rates and borrowers can enjoy the benefits of a lower interest rate.