Why finance if you can buy a home outright?
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The "tax advantage" doesn't make sense - you'd send $10,000 to the bank in order to avoid sending the governement $1,500?
Why finance if you can buy a home outright?Your interest write off is equivalent to writing off a donation to any non-profit/foundation. Buy your house and donate your calculated interest to charity, you'll realize the same savings there so taxes and interest write off are a non-issue. The only reasons I can come up with for not buying a house (mortgaging instead) is that if you spend all your cash on your house and you lose your job a few months later, you've got nothing. If you finance it and save your cash you'll be covered for emergency.
That being said, i would make sure that I have 6-8 months of salary saved (not invested, just saved in a money market somewhere) before i paid for the house in full. That will give you some emergency room and time to NOT PANIC if you run into some trouble after you buy the house.
Why finance if you can buy a home outright?You will be better off to pay the house outright and have no mortgage at all. The so called tax deduction really doesn't give a person a big break. Most people if they pay on a house for a full 30 years will pay triple their original cost of the home. Here is what you can do to see for yourself. Get some blank tax forms and (1) pretend you have a mortgage and (2) pretend you do not have a mortgage. Then you will see for yourself what situation would be better for you. I rather pay the IRS than the mortgage company any day. I paid my house off ten years and do not regret it.
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