3. No Private Mortgage Insurance (PMI)
– Generally when someone buys a house with FHA or conventional financing, and puts down less than 20%, they have to pay for Mortgage Insurance every month.
This is not to be confused with Homeowner’s Insurance, which insures the home against damage from fire, inclement weather, or other perils. Rather, mortgage insurance covers the bank in the event that you default on the loan. Despite the fact this insurance only benefits the lender, it’s the homeowner that is stuck paying the premium.