All Cash vs Mortgage? Who Wins Depends on Who You Ask.

All Cash vs Mortgage?  Who Wins Depends on Who You Ask.

The conversations people have about the benefits of buying a property for cash versus taking a mortgage or vice versa are ones that we here at consider a good problem to have.  Obviously, not everyone has that option to ponder, heck, in today's economy with mortgage credit availability being the lowest in nearly two decades and interest rates being the highest in that same window, there's too many people who don't even have the option of getting a mortgage right now.  The author of the accompanying article has a very decided view, but that's what's great about opinions on matters like this.  At the end of the day, there's really only one that matters. 

The benefits of buying for "all cash" are obvious, but are not without cause for some review, and let's face the fact that over the last three years, the cash Buyer has been the 800-pound gorilla in the room.  From 2020 through about half of 2022 cash was the primary weapon used to prevail in bidding wars that had become commonplace.  Now instead of thwarting other potential Buyers who had record low interest rates to bolster their offers, the cash buyer is again foiling the efforts of those buying with a mortgage.  Why?  Now with interest rates having doubled in less than a year people fortunate enough to have the option of paying in cash are doing so to in order not to pay rates they consider too high.  Will they then re-finance and pull their cash out when rates come back down?  Who knows.  When will it be that rates come down enough to make this an appealing option?  Who knows. 

When making the determination of HWAT to buy, WHERE to buy it, make sure to have some candid conversations with your RealtorĀ® and your Lender about another important question that doesn't get asked often enough, and that is WHY.  As we've posted in one of our previous recent blogs, the number of people who no regret their purchases in 2022 is staggeringly high, and part of that might just be because the question of WHY might not have been asked.  Once you've answered those questions, and your fortunate enough to be in a position to choose between a cash purchase or to obtain a mortgage, make sure all of the pros and cons of each are carefully considered and then proceed with care, because purchasing and selling real estate is always exciting, but it's not as easy as it appears on reality shows!  Ask any RealtorĀ® or Lender and they'll tell you the same! 


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