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Should I buy in cash?

I can afford to pay for a new home in cash but with the interest rates lower than usual I considered a $200k loan. Now I am looking at 5% and I am leaning towards cash. I would have little savings left after the cash payment which is why I am trying to see if a mortgage is a better option. by isotopian724 from Maricopa, Arizona. May 12th 2022 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,396 contributions

Most financial advisors will urge you to NOT pay cash for such a large purchase. That doesn't necessarily mean you should go for a maximum loan amount either. A lot more information is needed to help you determine what you should do. I'd love to help you get a better understanding of the risks and rewards of paying cash. Reach out and we can answer many of your questions so you can make the best decision for your situation. Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.NEXA is licensed in all states except MA and NY so give us a call. ~ 480-889-9000 - OR - 480-695-9300

May 12th 2022
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,660 contributions

It is your personal choice, but few people pay cash, even if they can. This is because mortgage money is relatively cheap. If you have that much cash laying around, you can usually find a better use for it, and better rate of return on your money than using it to pay cash for a house, plus for most people, there are also tax advantages. I'd consult a financial person to help you decide. I lend for NON-QM in MN, Wi, IA, SD, ND. Find me at - Cambria Mortgage, NMLS 274132

May 13th 2022
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