As all-cash offers become more common, many buyers wonder if skipping the mortgage is worth it. Let’s take a look at the pros and cons of paying cash in today’s market.
PROS OF PAYING CASH
1. Stronger Offer
Cash offers are often more appealing to sellers because they remove financing risk and typically close faster, which can give you a strong edge in a competitive market.
2. No Mortgage Interest
Paying cash means you avoid interest payments entirely, which can save tens (or even hundreds) of thousands over time.
3. Lower Closing Costs
Cash buyers don’t pay lender fees, loan origination costs, appraisal fees (in most cases), or mortgage insurance.
CONS OF PAYING CASH
1. Liquidity Risk
Tying up a large amount of cash in one asset (your home) could leave you with less flexibility for emergencies or other investments.
2. No Tax Deduction
You’ll miss out on the mortgage interest deduction, which can be helpful for some high-income earners.
Does “CASH” Mean Cash?
No! You can make a “cash” offer by providing proof of funds for the full purchase price and still secure a loan before closing — the best of both worlds!
