It's required on traditional loans over 80% Loan-to-Value (LTV). It's required on almost all FHA Loans. The insurance benefits the lender for taking additional risk. Traditional lenders do not charge an upfront fee. FHA's upfront fee is 2.25% of the loan amount which is added to the loan balance.Happy funding, Rudi

Hi Judy,Very simply the benefit is that it allows you to get into a property with less cash. It hedges the lack of cash by providing the lender additional security against default.Are you refinancing or purchasing?Best,MattPier West Capital