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If you are a cash buyer the mortgage rates aren't the factor to worry about. the market trend or more importantly, the price of the particular home you are interested in, is the factor to look at. Look at price compared to comparable sales, potential for increase or decrease in value, and other factors that you prefer in a home.
When rates are high buyers cannot qualify for a loan but I don't see rates going up in the 7 or 8% any time soon because that would stop the real estate market today. Cash talks when there are many sales and you can close quickly but just because you have cash in a good market many other buyers do to. If you are buying to rent out then paying cash gets you a higher return because you are not paying any money towards the interest on the loan. If you use your IRA your money from rent goes into your IRA tax free and you are making even more money. Talk to your accountant and see what they say about spliting your money up and buying a couple of homes to rent out or if you are just going to live in the house is that really the best place for your money or can you get a better return investing in something else. Home interest rates will never be lower in your life time since they are at 50-60 year lows right now. Good luck. Tom Inglesby
Interest rates do not affect a cash transaction. It does not matter if interest rates are high or low. If you are paying with all cash you could possibly negotiate a lower purchase price as well with a quick closing and no contigencies due to no possible financing issues.
It's better to buy a home when prices are low. Interest rates are irrelevant if the sale is cash.
I don't understand your question. Could you clarify what your asking?
I don't see how it ever would be good to buy at higher interest rates unless you have no other choice
I would suggest that you not only talk to your accountant but also your tax attorney if those are two separate people. Please make sure that you look at tax considerations as well when selling or purchasing a home.
I think what you mean is that you have a property that you would like to sell, but you wonder if you would have a higher probability of getting a cash offer when interest rates are higher. Please correct me if, I am wrong.
If this is the case, I can understand the logic behind it, but even now when interest rates are so low we are still seeing properties been bought cash. I think it depends on the sale price of the property more than the mortgage rates. The lower the price, then obviously more people will be able to afford it and be able to pay cash for it. Hope this info helps!
I would speak with your accountant and tell him what you want to do. This is just my opinion, but if you have the cash, buy it and stay debt free!
This is a question probably best answered by your accountant. It depends on how much interest you are getting on the cash that is either invested or in a savings account. If you are getting a high rate of return on the cash invested, then you might want to get a mortgage at today's low rates. If your cash is in a CD or other low-producing return, then you may want to pay cash for the house and not have a mortgage. Talk to your accountant about which way is going to make you more secure in the future if you are concerned about retirement in a few years, or if you are young, could your cash give more security in the long run by investing it and getting a mortgage. Hope this makes sense. There is no right or wrong answer.