We are almost set to close on a little house in the price range you’re looking at. It’s the first property we’ve bought with cash , though we paid off our old house a year into owning it. We’re downsizing and haven’t sold our old house yet. Here is my experience so far:Leesbro63 wrote: ↑Wed Feb 12, 2020 3:20 pmYet the "mere" psychological benefits are "other than that, how was the play Mrs. Lincoln"? They (psychological benefits of owning your home free and clear) are huge.Nowizard wrote: ↑Wed Feb 12, 2020 8:47 amPersonal decision, but my opinion is that unless circumstances say otherwise the benefit of paying cash is primarily psychological. If being debt free is comforting in this low interest environment, that is one approach. Financially, having at least a small loan gives you more to invest and some flexibility with your assets in case of emergencies.
1. This cash buy is hands-down the easiest transaction I’ve ever done. Very little paperwork, less issues, seller more accommodating. No digging for account history or random info the bank says it “needs” to process my loan.
2. NO crawling to the bank and living in fear of what an appraiser will say, what the inspector might find that is a flag for the bank, no BS from the dreaded underwriters who are protected from all contact with customers or accountability.
3. NO being stuck with a miserable loan origination experience, when it’s too close to the settlements date to change banks.
4. Respect from our agent because we were serious buyers with zero chance of financing falling through - I feel she negotiated stronger on our behalf (just an impression).
5. We negotiated harder for ourselves, because it was Real Money (! ). $2000 is $2000, not a few dollars on a monthly payment.
6. Fast closing, and our choice of dates (with approval from the seller, of course).
7. There will be NO payments and no escrow either. No amortization schedule full of interest amounts. Yes, the market of investments is great now, with ups and downs. The interest payment is always depressingly present.
8. Our closing costs will be about $376, after a $500 credit from the seller. $376!!! [Not thousands, rolled into a 30 year loan.]
9. My husband absolutely *loves* saying “we own our home”. Period. [No caveats, like -we own it, oh, except for a mortgage, which we could pay off if we wanted....simplicity is priceless for us]