Is it better to pay cash for a house if you have it in mutual funds, rather than take out a loan?
98840
Cash unless you need your money for something more important.  With cash you pay the actual price with no interest.  Another question you should ask is if you think your mutual funds are going to go up in price in the soon future.
316339
If you can afford it, and it will get you into your own home, then yes.  100% financing is quite popular nowadays for people who don't have a large down payment available.  Go for it, it's an investment on your future!
615701
it all depends on the landlord/management company.  Some are more forgiving, others are very strict requiring certain credit scores(or an additinal deposit).  But if you're selling your house, you should be able to use the money to take care of your financial issues.
24208
I agree with Angel. \n\nIt depends if you like living in CA...\n\nBuying is always better if you can afford to. You will build equity in your home and also enjoy nice tax breaks. It's basically "forced" savings :)\nRenting is basically paying someone else's mortgage. \n\nIt's always better to buy the smallest home in the best neighborhood...as opposed to the best house in the worst neighborhood.
946181
Depends on the state you are in. Check with your bank first. They might be willing to do it. Most lenders won't want to mess with that. A land/home package would be better and get you a better interest rate.
763557
Why cant you have a garage sale or even sell some things on ebay? I dont think taking out a bank loan is worth it because you are then going to be stuck with the interest and the loan payback when you return.
1143806
Probably better to get a different kind of loan, like a small business loan.  Putting your house up for a risky venture could be disastrous.
245607
I think it's a good idea in general, but what are the rates you are paying now?  There are only a few downsides to consider, the first (which another person mentioned to me when I thought of taking a loan) is that yes you are paying yourself, but one day when you take out that money, you will also pay income tax, so in effect you aren't making 7.5% but probably like 5% (and you are paying for it).  2nd is that if you have a Home Equity loan, it is tax deductible this year.  And is the car at a really good rate?  If it's like 1.9% or one of those great rates, then it wouldn't be worth it to move.\n\nHowever, I would probably take the loan since it seems the easiest way to get out of that debt, but I might try some "trickery" first.  If you can get that home equity loan onto a 0% credit card for a year, and THEN take out of the loan, you could save yourself some bucks.  In that year, you might be able to put a nice dent into it, who knows.
225942
it all depends on the interest rate and the terms of the loan.....if you only need the 20,000, then dont take the loan out for 100,000, because then you will be making payments off the loan size of 100,000
1056785
if you can find a home in your price range that will appreciate in value, i think putting $$$ towards equity rather than just rent is a good idea - but make sure it's a home that will grow in value - and don't do an interest only mortgage unless you're disciplined enough to pay more than what's due each month
286106
House, no.  Stocks, yes (but only if you know which stocks to get :)\n\nReason, stocks are portable and you can take them with you.\n\nHouses, not normally portable.  Plus, you have to get a 30 year mortgage in many states just to have a comfortable monthly payment.  A house automatically implies you intend to stay longer.  Now, if you intend to keep the house when you move and rent it out or use it as a vacation home or retirement home (later), then it might be worth doing.\n\nOf course, it's just my opinion, it's really your decision.
613787
This is true. If you can earn more for your money by keeping them in a bank, you tend to save and deposit them there. You will not be encouraged to borrow because you will be paying higher interest.\n\nWith lower interest rates, you tend to place your money where you could earn more, such as in business or other investments. Also, if you may borrow because you do not worry so much about the interest.
450550
The major difference is with one you get a car, and the other you get a house. Lol. Seriously though, the difference is interest rates and length of loans.
52560
No. You can't squeeze money out of a bank.  However, you can reduce your costs and therefore increase your potential return. Most mutual funds have "break points" at which they reduce the sales charge. Most start at about $25k. You can get the break points by contributing smaller amounts over a 13 month period. You would use a "letter of intent" to do so. You would still need to meet the $25k requirement, but could do so over time.\n\nAnother option would be a "Managed Account" with a brokerage firm. Minimums run about $25-50k depending on the firm. The advantage is that you pay only a small fee as a percentage of assets under management.\n\nUse this information at your own risk. Consult a financial advisor.
502213
If you are getting a higher interest rate from your IRA, then put your $ in to the IRA.  If the interest rate on the home loan is higher than the IRA, then put the $ on the home loan.  Which ever is going to return more $ to you.
455254
Mutual funds are a type of investment, where professional managers use your money to buy a variety of stocks (or bonds). It spreads the risk among more diverse investments so they are better than buying a single stock.\n\nIf you mean by investing in banks simply putting your money in the bank and earning interest. Then YES, mutual funds are better than that because banks pay almost no interest.
79604
Situational... \n\nIf you do choose to buy you will get equity over time and don't have to worry about mortgage rates inflating (unless you have an adjustable rate), you can also deduct some of your mortgage and real estate taxes, which you are unable to do otherwise unless you exceed the standard deduction. Depending on the rates, payment, market cycle etc. it can be better to take your mortgage and invest in mutual bonds and the stock market which sees a long term return of around 8 percent. Buying is not necessarily something you should do for the investment as there are other ways to get higher returns on your money *and often more reliably*. \n\nIt is probably not a good time right now to buy; right now it is generally a sellers market I think, as prices have recently been exploding all over the world. I’d save your money at this time and when the market cycle ///demand for houses drop and poeple are willing to sell for less, and then is a good time to buy and wait for it to turn into sellers market again to get a return on ur investment. \n\nLease for now and buy when the market stabilizes is probably going to be the best for you, but then I don’t know your situation.