Which party is typically responsible for obtaining a mortgage insurance premium?

The mortgagor is typically responsible for obtaining a mortgage insurance premium, especially when they are securing a loan with a down payment that is less than 20% of the purchase price. This insurance is required by lenders to protect themselves in case the homeowner defaults on the loan. The mortgagor, who is the borrower in the real estate transaction, pays the mortgage insurance premium as part of their loan agreement. This requirement ensures that lenders can mitigate risk and continue lending to individuals who may not have substantial equity in their homes from the outset.

In contrast, the mortgagee, or lender, does not directly obtain the mortgage insurance; rather, they benefit from it as a protection mechanism should the borrower fail to make their payments. The real estate broker and the title company are involved in the transaction but are not responsible for obtaining mortgage insurance premiums. Their roles focus more on facilitating the sale and ensuring that the transfer of title is handled properly.