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Buying a house with cash vs. having a small mortgage?
Posted on 5/8/13 at 11:47 am
Posted on 5/8/13 at 11:47 am
Would it be better to buy a house out right with cash and drain your account or would it be better to put down a large down payment and finance a small portion in order to keep some of your money liquid and not tied up in a house?
8
Posted on 5/8/13 at 11:51 am to b-rab2
most will tell you to finance as much as you can due to the low rates.
I think a completely paid for home would be a great situation to be in.
That being said, I would want to make sure I still have an emergency fund to cover unexpected problems. I would not want every dime I had to my name wrapped up in the house.
I think a completely paid for home would be a great situation to be in.
That being said, I would want to make sure I still have an emergency fund to cover unexpected problems. I would not want every dime I had to my name wrapped up in the house.
Posted on 5/8/13 at 11:52 am to b-rab2
It'd be nice to have cash to do emergency repairs like if the A/C needs to be replaced or a big sewer problem.
Posted on 5/8/13 at 11:52 am to b-rab2
I would pay cash just so I could wear this to the closing meeting.
Posted on 5/8/13 at 11:59 am to Chris4x4gill2
yeah I think it would be pretty cool to pay cash for a house and have some extra change on the side.. that would be the best ideal situation..
one can only dream of doing that one day
one can only dream of doing that one day
Posted on 5/8/13 at 12:43 pm to b-rab2
I've never bought a house before, I know would like some leftover money from my down payment in case something else arises.
Posted on 5/8/13 at 12:44 pm to Waffle House
Posted on 5/8/13 at 1:12 pm to jmtigers
it probably depends on what you plan on doing with the cash if you take on the mortgage. with interest rates as low as they are, a mortgage isn't the worst thing in the world.
Posted on 5/8/13 at 1:22 pm to b-rab2
How much do you think you can make in the market?
If you can make 10% and your mortgage rate is < 3%, that's a big difference.
If you can make 10% and your mortgage rate is < 3%, that's a big difference.
Posted on 5/8/13 at 1:54 pm to Waffle House
quote:
I would pay cash just so I could wear this to the closing meeting.
I would love to be there to see the look on their face instead of bringing a certified check. It is my understanding it is now a trend to want the closing money wired to them in advance.
Posted on 5/8/13 at 1:57 pm to Waffle House
I've been waiting for an opportunity to try out this bad boy.
Posted on 5/8/13 at 1:57 pm to b-rab2
Also, are you trying to build your credit as well or what? There are several factors to be considered.
Posted on 5/8/13 at 2:42 pm to idlewatcher
Money is practically free right now, finance.
Posted on 5/8/13 at 3:29 pm to b-rab2
I own my home now but I'm older and paying off the mortgage before retirement (which is still a long ways off) was a priority for me. If I was younger I'd take out a mortgage for a payment I was comfortable with in any situation and invest/stash the balance. It's not a bad idea IMO to have a house fund for repairs and maitenance that may be coming up.
Posted on 5/8/13 at 4:37 pm to VABuckeye
Are you talking about having absolutely zero after you buy? I would say no mortgage is better than any mortgage, no matter how low the interest rate. If you've got enough to be comfortable with for a while, why pay money with interest, when you can keep that money? The money you save by not having a mortgage, will build up fast.
This post was edited on 5/8/13 at 4:43 pm
Posted on 5/8/13 at 4:43 pm to kage
If you have 6 months of pay stash on the side, pay cash for the house. From there, just keep putting money back in your pocket as if you were paying a mortgage.
Oh, one other thing. The house you looking to buy, will it be the only house you plan to own over your life time? If not go with a mortgage.
Oh, one other thing. The house you looking to buy, will it be the only house you plan to own over your life time? If not go with a mortgage.
This post was edited on 5/8/13 at 4:45 pm
Posted on 5/8/13 at 11:03 pm to idlewatcher
Naa I don't dont think I need to build anymore credit than I have.
Posted on 5/9/13 at 7:15 am to VABuckeye
quote:
I own my home now but I'm older and paying off the mortgage before retirement (which is still a long ways off) was a priority for me. If I was younger I'd take out a mortgage for a payment I was comfortable with in any situation and invest/stash the balance. It's not a bad idea IMO to have a house fund for repairs and maitenance that may be coming up.
Solid advice. I'm in mid 30's and put down exactly 20%, not a penny more, on a 30/yr @ 3.625% in August 2012. Did new construction, this will not be my last home, I have no urgency to pay it off.
The fact that I have been attacking the market since then and riding a wave in market while using cheap money on mortgage and enjoying the tax breaks from both is a no brainer for me.
That said, I'll build again in about 5 years, it'll be my little 4000 sq ft mini mansion, with goal to pay it off before or shortly after fixed income retirement.
Posted on 5/9/13 at 9:53 am to kage
quote:Math. It do work.
I would say no mortgage is better than any mortgage, no matter how low the interest rate. If you've got enough to be comfortable with for a while, why pay money with interest, when you can keep that money? The money you save by not having a mortgage, will build up fast.
Posted on 5/9/13 at 10:58 am to b-rab2
My portfolio earned about 13% last year without much work.
I'd finance the hell out of a house now with these rates. Keep your savings invested.
I'd finance the hell out of a house now with these rates. Keep your savings invested.
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