Should you Pay for a Home in Cash?

One might easily assume that paying for a home in cash may be optimal but it’s not always so clear. Let’s take a look at the main advantages of paying for a home in cash versus obtaining a home loan. One of the main benefits of an upfront payment is that you won’t need to pay interest or escrow costs. 

Paying in cash will also make your offer appear more attractive to the seller if they are receiving multiple offers since you won’t have to worry about getting denied for a home loan. The closing process will also be faster with a cash payment. One of the drawbacks of a cash payment is that buyers may have access to less cash if they stretched themselves financially in order to buy it.

However, financing does come with its benefits as well. You will have more money to invest in mutual funds, a retirement plan or stock and potentially get a better return depending on the market. Most investments offer a higher return versus the cost of paying for mortgage interest. Another bonus is that private mortgage interest is tax deductible. Having a mortgage also enables you to take advantage of the homestead exemption in case of financial trouble which makes your home exempt from creditors.

The fact remains that the majority of Americans finance their homes. Financial experts suggest that prospective home owners can afford the monthly payments and have sufficient savings stocked away in case of an emergency.


When you are ready to buy or sell your home, we at Sky Real Estate Professionals are here to help you with all of your real estate needs! If you are unsure what your options are, call Tiffany Markovsky at 281-376-0009 or email at