Advantages of Paying Cash for a House

Less Stress

Paying cash allows you to begin enjoying owning your own home from the beginning. Without the burden of a mortgage, you are free to focus your energy and attention on transforming your new home into the space you've always dreamed about.

Paying cash can save you thousands of dollars in interest on a traditional mortgage. If you buy your house with a mortgage, your first payments are applied almost entirely to the interest on your loan. By paying cash, you don't pay any interest and the only financial concerns you have are the closing costs. In the early years of owning your home, money that would normally be spent on a mortgage is free to invest in your future and the goals you have always wanted to achieve. You also save money on lender fees because you aren't borrowing any money.

If you decide to give your house to a family member, you are not transferring bondage to a debt. This is especially important if you pass away. Leaving your family members with a gift instead of a burden is a tremendous legacy. You are free to do with the house as you wish when you have paid for it in full up front.

When paying cash, you are not obligated to perform the appraisals and inspections that a bank requires to the recipients of a home loan. It is still a good idea to inspect your home for termites and other pests and to get the home appraised before you purchase it. However, you are in control of which inspections are completed on the home.

After purchasing a home with cash, you can quickly sell the home for a profit. After purchasing the home, you may notice the housing market improving. If the value of your home rises, you can sell it at the higher value and make money on your purchase. Since you're not tied to a mortgage with interest, you can make more money in this situation than if you borrowed the money to buy the home.

When you pay cash for your home, you don't have to worry about the market changing the amount of the monthly payments to your mortgage company. While the value of your home may depreciate in value, your family's security is still solid. No matter what happens to the housing market, your family has a place to live that has been paid for in full.