dcsimg

Purchasing a House With All Cash

Posted on January 30 By MLP Lending Guide

If you have large amounts of cash available, you may wish to consider purchasing a home with all cash. The best way to examine this situation is to look at it like an investment. However, the investment is not the house you would enjoy any appreciation of the house's value whether you obtained a mortgage or used cash. The investment is in the mortgage you would be escaping if you paid for your house with all cash.

If the house you wish to purchase is priced at $500,000 and you have that amount of cash currently available, let's say you have two options. You can get a 20-year fixed rate mortgage at 7%, or you can pay with all cash. If you go with the mortgage, think about all the money you'll spend over those 20 years in interest alone. If you pay with cash, however, you can consider those savings as an investment. Yes, you'll lose all of that cash, which is extremely liquid, but you'll have a mortgage-free house with no mortgage, and thus you can analyze the situation in terms of how much money you'll be saving.

Additionally, if your house has no mortgage on it, then you've actually got another method to obtain more liquid wealth. Since your home has no liens on it, you could obtain a home equity loan in a matter of days, and probably get more cash than you would have been able to get with a mortgaged house. Consider all these options when deciding whether to purchase a house with cash only.

This entry is filed under Home mortgages . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response.
National Mortgage Rates National Refinance Rates
3.07%
Compare Local Rates

4 Responses to "Purchasing a House With All Cash"
  1. Henrietta Toa 30, Aug, 2010

    Tired of obtaining low numbers of useless traffic for your website? Well i want to inform you of a new underground tactic which makes myself $900 per day on 100% AUTOPILOT. I could truthfully be here all day and going into detail but why dont you just check their website out? There is a excellent video that explains everything. So if your seriously interested in making simple hard cash this is the website for you. Auto Traffic Avalanche

      Reply»  
  2. Otis Sieren 30, Aug, 2010

    Sick of obtaining low amounts of useless traffic to your website? Well i want to inform you of a brand new underground tactic which makes myself $900 daily on 100% AUTOPILOT. I could be here all day and going into detail but why dont you simply check their site out? There is a excellent video that explains everything. So if your serious about making effortless hard cash this is the website for you. Auto Traffic Avalanche

      Reply»  
  3. tracey hutchs 22, Jan, 2010

    hey great information your site contains will return when I have time to read more.

      Reply»  
  4. Lenox Financial Mortgages 30, Jan, 2007

    Great article. Yes, I've done this before on a couple occasions. Great investment, but you have to be careful and watch the housing market.

      Reply»  

Leave a Comment
 
 
 
Get Mortgage Loan Quotes Now
  • Free Quotes
  • No Hidden Fees
  • No Obligations
  • Refinance
  • New Home Loan
  • Home Equity
  • Debt Consolidation
  • FHA Loan Orientation Guide
  • FHA Loan Orientation Guide

    Use our FHA Guide to find answers to all questions related to FHA loan.

    Click here to Download

Compare Mortgage Rates