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Should I buy a house with cash?

I could buy a small home with all of my cash and investments. Is it better to do that or to take out a mortgage?
Asked By Taylor L. | Bend, OR | 377 views | Buying | 1 year ago
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67 Answers
Lisa and Greg Harris

eXp Realty, LLC


This is all dependent on what you want to do with the cash if you are not going to fully pay cash for the home. I mean if it is just sitting in a savings account and not working for you then this might not be a good option. To borrow money right now is still fairly cheap overall. If you do not want a payment and do not have the money coming in to pay a mortgage then paying in full might be a better fit. But if you are paying say.. 50% down and using the rest of that cash to invest for a higher return, then that might make better sense.... I would recommend talking to a lender and seeing what the finance options looks like to determine what is a better fit for your end goal!
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60 Answers
Steven Hunt

Real Broker NY LLC


I think it is best to buy with a loan if you plan to buy investments. This will allow you to buy more investments in a faster time which will give you a bigger return fatser and then you will be able to keep buying more faster.
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Melissa Key

Woodland Realty, Inc.


A lot would depend on your age and how soon you may need to access your cash and investments if it will be needed for your retirement. In my opinion (I was a CPA for years before becoming a real estate broker), if you are under 55 you may want to consider making a substantial down payment (20-50%) and financing the rest with a mortgage. If you are over 55 years old it would be advantageous to consult a Certified Financial Professional for their advise.
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Santiago Valdez

Compass - Chicago - River North (Kinzie)


The beauty of real estate is leverage which usually means a mortgage. However, if the mortgage will put you on a monthly payment situation that is above what you feel comfortable, it may make sense to sell it all and have no monthly payment which may allow you an easier life-style. Its all a matter of looking at the totality of your situation, I would consult with your local agent to make sure they help you with realistic pricing and can connect you with a lender to let you know what the monthly payments and qualifications would look like.
Kuwana Norman

Purvey Properties, Inc.


Hello Taylor I would not recommend using all of you cash. You might need some cash in an emergency or if an unexpected expense arises. Consider putting down a significant deposit and financing the rest. You can always pay it off early over a period of time instead of paying for it all at once. Good luck!
Edward Davis

Fathom Realty, LLC

My thoughts on this is to put down a comfortable amount to get your monthly payments to where it is manageable for you and perhaps pay an additional amount each month toward principal so as to reduce the amount of years you pay for the house, invest a portion of it to reestablish your "nest egg" and enjoy life.
Tony McMahon

eXp Realty


Would you be cash strapped by using all of your cash and or investments, are your investments making you enough money to offset the higher mortgage interest rates? There are many variables to consider. A good down payment and an interest rate buydown may be the better option. You could also look for a home that offers an assumable mortgage as many home owners purchased or refinanced at much lower rates than the current ones.
Steven Brandt

Xsell Realty

putting down a good amount say 30 to 50% as Real Estate is fairly safe place to invest. It makes a difference if this is a 2nd home or your main home. Either way a good amount down is a good decision. Even with intrest rates higher than in recent past they will come down again and you can refinance. With a lot of equity you can always sell to get out from a mortgage.
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1 Answer
Laura Wallace

Keller Williams Realty


I would not use all your cash. Invest in a mortgage and refinance when the rates go down this year.
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1 Answer
Becky McDaniel

Realpro Real Estate Professionals

Taylor, This is a question that would be best answered by what is the best for you...Do you want a small home? Will a smaller place work for your lifestyle? Do you want to use all your cash/investments? A mortgage is something that you will need to qualify for and if you do; is this something that you want to do? Again, it is best answered by the buyer. My advice would be to discuss with your lender of choice to see what would be best for your own situation. There are too many variables that can only be answered by you.

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