There are plenty of benefits to paying cash for a home, but don’t overlook the opportunities that come with leverage.
One advantage, of course, is the fact that over time, your investment will grow in value. It can be safely said that real estate is one of the safest long term investments one can make.
That being said, you have a few choices as to how you’ll make that investment work for you. You can either pay cash for your home (Provided you have that kind of cash on hand), or you can finance. So which one is better?
Pros Of Paying Cash For Your Home
- The first, and most obvious, is that you won’t have a monthly mortgage payment
- You own your home outright, and are given title, as soon as escrow closes
- Escrow may close more quickly, as you have options to waive certain contingencies that are usually required when you obtain a mortgage loan
Pros To Obtaining a Mortgage To Purchase a Home
- Using leverage, you’re able to get into a home with a relatively small amount of cash. In some cases, you can qualify for a home mortgage with as little as 3% (Or less under certain circumstances)
- You don’t have to wait, scrimp or save, until you have the entire cash balance to purchase a home. With the median price of a single family home in Santa Clarita now ranging just above $500,000, that’s a LOT of cash to save!
- Your equity will increase over time as your principle loan balance decreases, and your home value increases
Whatever your home purchase choice, we are here to help make it happen!
Montemayor and Associates are a team of highly trained, licensed, experienced, full-service Realtors serving the Santa Clarita Valley and surrounding areas helping home buyers and sellers achieve their real estate goals. Contact us today for a no obligation consultation.Email Contact Form