Quote:
Originally Posted by Ricky Bobby
Whats the going mortgage rate nowadays anyway? We bought in April 2012 and locked in at 3.99% for 30 yrs, pretty damn good by the standards of 20 years ago.
My opinion is this, if I came into a ton of money, I'd pay off my mortgage. At the interest rate I'm at though, I'm able to float my capital and use my lender's cash at an extremely low interest rate.
The only problem with buying a house cash nowadays is you don't know what the property values, etc are going to be in a couple years, very volatile right now. If you were buying a house cash as a fixer upper to flip it and make money thats a different story.
Just make sure you can put down at least 20%, locking in a 30 yr at a low rate will ensure at least your payments are reasonable. You always have the option to pay your mortgage off early as well! Sometimes people forget this.
Also, you say main reason to buy cash is because of financial security with a job, but that counteracts, because for example a 200k house bought in cash, yes you may have no mortgage but you'll have 200k less in the bank that you could have used to float your income while you found a new job. It goes both ways.
Hope that helps man
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Well with the job situation I'm in a union so it's whenever a job comes up. A job could be as short as a day or 2 to a couple years. Sometimes I may have a couple days lay off between jobs or as much as 6 months it's all varies and in my down time I get unemployment so I want to make sure that in my downtime I would be able to cover a mortgage payment if I had one. When it comes time to look at houses my wife probably won't be working so everything would be based off my income.