I have several clients at your age who are selling homes and making plans for distribution of their estates. They are focused on passing wealth to heirs in a way that allows them to continue to qualify for medical and other retirement benefits. If maximizing the amount you pass to heirs or your favorite charity is a goal, then hiring a tax attorney or certified financial planner for some advice would be a wise investment prior to purchasing a home.
If you are not concerned about passing your estate in a way that maximizes its value, then maintaining cash reserves may be your next consideration. If you have a decent pension or retirement income, and $160,000 is most of your available cash, it would be wise to get a mortgage at today's low interest rates and conserve cash for unforeseen events. If you have significantly more than $160,000 so that money is not really a problem, then you probably would not be asking the question. Speaking with a financial planner about the best place to invest your cash to maintain it's value would also be wise. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click..