Home Buying in Fairborn>Question Details

Need2knowsoon, Home Buyer in Fairborn, OH

should I pay off my home or keep a mortgage?

Asked by Need2knowsoon, Fairborn, OH Mon Jul 18, 2011

I'm getting ready to purchase a "new construction" home. I was planning on buying completely no mortgage. I was wanting to know the advantages / disadvantages of not getting a mortgage. Isn't it to my advantage, to own a home outright, or is having some sort of mortgage better??

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I would talk to a financial planner or tax advisor. Ron brings up a few good points -- having a mortgage offers a huge tax deduction. And, it helps improve your credit score. There are many other questions / issues to consider. What are property values doing in your area? Do you plan on staying in your home a long time? How close are you to retirement (or are you already retired)? Do you have other savings (i.e. retirement accounts) in addition to the money you tend to purchase the house with? I'd be careful about putting everything I had into a brand new home. Talk to a professional.
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1 vote Thank Flag Link Mon Jul 18, 2011
You can always buy the route of CASH(less closing costs). If you need a Mortgage or Home Equity line afterwards it should be very easy to do!
0 votes Thank Flag Link Mon Jul 18, 2011
Only your TAX MAN knows for sure:

You will lose the Tax deduction.

If that's not important to you........
also, it would help your credit score to pay over time.

Good luck and may God bless
0 votes Thank Flag Link Mon Jul 18, 2011
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