Hard to believe, but in South Florida, more homebuyers now pay all cash for their home than get a mortgage.
For many people, it’s a moot point, because they don’t have enough cash to pass up a mortgage.
But if you did have the stash to pay cash, is it a good idea?
Veteran journalist Greg Daugherty looked at the pros and cons of paying all cash in a recent story for Investopedia, and asked us for our take on the matter.
There’s no doubt that an all cash deal can make you a more competitive buyer, but by not taking a mortgage, you’ll lose out on some historically cheap financing and pass up a great tax deduction that most working people need.
Plus, many homeowners learned their lesson in 2008 that while it’s easy to put money into your house, it’s much harder to get it out.
Take a look at Greg’s article, and see what you think.
The Takeaway: Everyone’s situation is different, but for clients who can profit from the tax deduction, it’s normally our preference to see a solid down payment coupled with the judicious use of a mortgage, at least while rates stay so attractive.