What advantage does a borrower typically gain from mortgage insurance?

A borrower typically benefits from mortgage insurance primarily because it allows them to purchase a home with a minimal down payment. When a borrower is unable to make a substantial down payment, often less than 20% of the home's purchase price, mortgage insurance provides protection to the lender against the risk of default. This protection enables lenders to offer loans with lower down payment requirements, which can be particularly beneficial for first-time homebuyers who may not have sufficient savings to meet traditional down payment standards.

By securing mortgage insurance, borrowers gain access to financing options that might otherwise be unavailable, allowing more individuals to enter the housing market. This is crucial for those looking to own a home without having to wait years to save for a larger down payment. The other options listed, while potentially relevant in different contexts, do not accurately capture the primary advantage that mortgage insurance provides in facilitating home purchases with lower down payments.