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Answers (5)
- Susanna Kunkel, "SusannaKunkel"
- Contributions:105
You've got some great answers here in terms of looking at your financial planning. For real estate negotiating - I'd say there's a definite advantage to paying wish cash in today's times. You can then sort out whether having debt on the house is to your advantage and can always put a loan on it later. I've recently had great success negotiating for buyers using all cash, or majority of cash. Find an experienced, knowledgable buyers agent in your area that loves to negotiate! Good luck. Susanna
- Valorie Stover, "QUALITY REALTOR"
- Contributions:170
I have a view most don't agree with "pay cash". I have had my home paid for, for 20 years. I have put into the bank every month the same amount I would of paid for a loan. You will thank your lucky stars every month that you don't have to come up with the amount.
I am a Realtor and I would give this advise to any of my clients if asked.
I am a Realtor and I would give this advise to any of my clients if asked.
- Debbie Embler, "IlikecallingNCHome"
- Contributions:47
It is always better if you have the option to own something outright and not be indebted to anyone or anything. So if you have the cash, buy and OWN a home. So few people do nowadays. And consider yourselves blessed!
- Nathan Wolf, "natewolf"
- Contributions:1825
Also consider that mortgage interest in most cases is tax-deductible. So it may make sense taxwise to utilize a mortgage. Your accountant can answer the benefits of your tax credit from a mortgage.
- Nathan Wolf, "natewolf"
- Contributions:1825
If you're ready to buy, and with prices continuing to go down currently, the choice is really up to you.
You have the best persepective on buying real estate: For the Long Haul.
So, if you can afford to pay cash, and don't need your cash for any other investment, then it makes sense to pay cash.
However, rates are very low, they may continue to go down, but they may also go back up. And hovering around 5-percent interest rate, this is record lows. Sure, they could drop to below 4-percent, but if they go back up -- which eventually they will, and you will want to borrow money later, then you have to determine that risk.
As home prices eventually go back up, it could be a double-whammy as interest rates rise. Timing in that case would be everything.
The one thing to avoid is an Adjustable Rate Mortgage. That's where most of this danger in the market has occurred. Promises of super-low short term rates, which clearly were going to go up.
If you make a purchase, using a 30-year fixed rate, that is usually the best long term strategy.
is it better to purchase a home outright with cash if possible or take on a mortgage?
We are in our mid 50s and want to settle in for the long haul.
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