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Should I take advantage of the low int. rate or pay cash to buy a house?

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October 16 2009 - Mansfield
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Profile picture for frisky1

jkonstant may be right but in PA any deviation from the executed 16 page contract is considered a breach. so if you write in that you're putting 20% down, then later decide to put 25% down and you don't get that change agreed in writing with the seller, you've violated the contract and the seller has grounds to get out. This is because they typically never use attys in PA and they don't want realtors practicing law. You agree to exactly whats written and thats it unless both sides reagree in writing.

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October 17 2009
You can make a cash offer to encourage a better deal and then finance the purchase to keep the cash in your pocket. This is pretty common. You are simply buying without any financing contingency. Just be prepared to pay cash if the financing fails for some reason. It is not deceptive to do this as long as you actually have the cash to buy it, again, if you cannot arrange the financing by closing. Be sure to have an appraisal contingency either way.
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October 17 2009
Profile picture for Mr Caveat
i would save the cash... if the house falls 60% after you buy it, you still have the option to foreclose and use your cash to buy another. if not, you'll pay a historically low rate for 2-5 years while the funds grow in CDs or Ginnie Maes (which have yielded 4.5% this year and are also FDIC insured)

there are so many reasons why cash is still highly valuable in a deflationary environment.

in all your loss is really not much and the ability to hold off on picking the inflation or deflation horse is very important.
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October 16 2009
Try this link:
http://www.zillow.com/adv ... e/286433/

You get better deal with cash purchase however.
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October 16 2009
 
Related Questions
Should I take advantage of the low int. rate or pay cash to buy a house?
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Latest answer by frisky1
October 17 2009 | 4 answers
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