Pros and Cons of Paying Cash for a Home

Even if you have enough cash to buy your house outright, it may not necessarily be the best decision for you. Consider the following pros and cons, then discuss your options with a qualified tax adviser or financial planner.

Pros
Making a cash offer greatly reduces the amount of paperwork (and fees) involved in buying a house and can save thousands of dollars in mortgage interest and closing costs. Also, owning a debt-free property can provide financial peace of mind.

Cons
Some buyers feel more comfortable keeping more of their assets liquid for greater flexibility or in case of emergency. Depending on your savings and investment income, you may prefer to take advantage of the tax deductions available on mortgage interest.