What do I save if buy a house with all cash? (insurance, fees)

[misterno]

The only thing I can think of is home insurance that I am not forced to buy.

Anything else?

[Rakin]

Originally Posted by misterno

The only thing I can think of is home insurance that I am not forced to buy.

Anything else?

You would buy a home in Houston and not take out insurance ? They get many hurricanes down that way.

The main thing you save is Lender fees. All else stays the same.

[misterno]

So how much is lender's fees approximately?

[Rakin]

Originally Posted by misterno

So how much is lender's fees approximately?

It's all variable by the lender. You'd need to ask them what they charge.

You would also not be paying interest on a mortgage.

[misterno]

Is that all?

This is not much. I would rather get 30yr mortgage

the problem is I am not earning much on my savings, at least not more than 4%

[VictorBurek]

There are benefits to a mortgage. Once you buy a home all cash, it could be tough to get that cash back if you need it.

[misterno]

Originally Posted by VictorBurek

There are benefits to a mortgage. Once you buy a home all cash, it could be tough to get that cash back if you need it.

So tell me what are the benefits of taking a mortgage?

[thelopez2]

Originally Posted by misterno

So how much is lender's fees approximately?

You'll save on interest. Would you still get title insurance if you paid all cash? Some see cash in the pocket a benefit. There is also leverage for investment.

[bbnetworking]

home insurance is .10%/year of your cost of the house? and you want to take that risk? I wouldn't recommend it.

[VictorBurek]

there are several benefits to a home mortgage:
1. interest is tax deductible
2. cheap source for borrowing money, where else can you borrow money over 30 years under 5%
3. allows you to leverage your cash into other income generating items such as stocks, bonds, other properties
4. allows you to hold onto your cash in case of emergency