Quote:
Originally Posted by Atticus
That's horrible advice. With historically low interest rates you would be insane to purchase a home entirely in cash.
We wont even get into the tax deductions on mortgage interest....
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I agree, nothing wrong with using the banks money when you put your cash to work making more than you would be saving from the interest rate the bank is charging.
I just locked up a new house at 4.875% for 30 years. With interest rates that cheap I will borrow ALL DAY long. Instead of using up all of my cash on that i use the bank's money. I then go invest my cash and make a 12% return on it. Why do i want to use my cash to save less than 5% (not counting tax deductions) when i can use the banks money and then go make 12% with my cash. I net over 7% to the good.