By Joe L. Fisher
Buying with cash pros and cons
H
omebuying is not for the faint heart. If you are reading this, you probably know this already.
Also, if you are reading this, it means you are already at a crucial point in this process. THE FINANCING PHASE Many new buyers often struggle to answer this question, and let’s face it, the mortgage is payment is not that idealistic.
If you can pay cash, why not? You’d avoid the hustle of filling in countless mortgage application papers. You’d avoid the headache that comes with chasing after banks and lenders. Heck! You’d even not have to worry about your credit score or your debt to income ratio, and many other things. BUYING CASH IS A NO-BRAINER! Well, not necessarily, and this is what we’ll be discussing in this article.
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IS BUYING CASH THE RIGHT FINANCIAL MOVE? Let’s find out. Buying a home with cash isn’t always the right financial decision, even if you have a few hundred thousand dollars just sitting around. It may seem like a good move, but it is not. But, it has some of its own merits that we cannot ignore. As such, if you are considering buying a home with cash, it is important that you first understand what it means for your bottom line and long-term financial goals. The first step is determining whether buying cash is more advantageous than buying with a mortgage. In essence, run the numbers before making a decision. LET’S DO THE MATHS... The Median Sales Price of Houses Sold for the United States is $374,900, according to Q2 data from the Federal Reserve Bank of St. Louis. The current interest rates are around 2.80-2.90% for the average 30-year fixed mortgage rate and 2.15%-2.20% for the 15-year mortgage.
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