Buying a home means having to make several important decisions. Among them, you’ll need to figure out how you intend to provide financing. This often means choosing between cash or applying for a mortgage.
Buying a home with cash has its benefits if you have the means to do so. You can avoid having to pay interest that comes attached to a mortgage and you can avoid a host of fees. However, even if you pay with cash you’ll still need to pay for things like homeowner’s insurance, property taxes, and potential HOA payments depending on the property’s location.
Having cash available also serves a potent negotiating tool. You may be able to negotiate a lower purchase price and expedite the closing process, solidifying the chances of getting the home you seek.
Paying with cash means you won’t be able to deduct mortgage interest. Since real estate is a liquid asset, there is the possibility of losing money when attempting to sell. Mortgages rates are typically low and they usually come with small down payments that improve upfront affordability. Mortgage interest can be used as a tax deduction and allows more cash in your hand to use for any future costs.
Do keep in mind, however, the mortgage interest needs to be paid, which can quickly add up. Furthermore, mortgage payments can extend up to thirty years, which means thirty years of making payments. If payments aren’t made, the home may be lost.
If you’re thinking about buying a home, contact Monroe Funding Corp and we’ll discuss hard money lending options. You may find they’re a better fit for you.
This update is by hard money lending Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders Miami or hard money loans Miami, please call 954-816-0388 or fill out our application.