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Mortgages

Is It Better to Finance or Pay Cash?

by Bill Ness on December 12, 2011

For most homeowners, investing in a new home requires taking on a mortgage to cover a portion of the cost. But that isn’t always the case. Retirees who are downsizing from their family home may find themselves in a position to choose whether they want to finance or pay cash. But which is the best choice?

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Pay Cash or Finance Your Retirement Home, Which Is a Better Option?

by A.W. Berry on November 9, 2009

How you pay for your retirement home can have a noteworthy pecuniary impact during your retirement years. Choosing the right option should take into account retirement income, tax bracket, lifestyle, savings, health, economic and market conditions.

If the money for the retirement home is coming from the sale of another property or is already available in capital savings, how that money is allocated in to retirement property can potentially raise or lower standard of living significantly. For example, retirement home funds divided into two parts with which two smaller homes rather than one larger home are purchased. This option provides potential income through rental of the second property and capital savings in both the homes. In this situation, paying cash is a good choice.

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