what is better buy a house cash or do a mortgage?
489057
get the lowest fixed rate mortgage you can get and invest the money borrowed in something secure like a money market.  Let's say you borrow at 5.75% and invest at 4.5% - the interest paid on the mortgage is tax deductible - for a person in the 28% marginal bracket the effective rate is 4.14%.  As interest rates rise, your mortgage payment stays level but your income from the investment rises.
363028
I would have to say mortgage brokers. Mortgage brokers have a choice in many mortgage companies and a lot of them offer special deals for loans due to the competition whereas banks usually offer just a few types of loans.\n\nOne of the biggest mistakes that homeowners make is not researching and checking around before deciding on a loan. I would go to several banks and mortgage brokers and tell them what I need, then compare the loans offered. (Be sure to get a copy of the credit report if a bank pulls one. Multiple inquiries into your credit can make your credit lower.)\n\nBefore you go to a bank or mortgage broker though, research types of loans and the current interest rate for that day. Interest rates change alot and its important info to know. Do you want a 30 yr fixed or 15 fixed? This can also effect the interest rate you get. Since you have a good credit score, you should be able to get a pretty good interest rate. Also ask about special programs or promotions. Some mortgage companies offer special promotions such as lower closing costs and etc.. Don't forget to ask the fees that banks and mortgage brokers tack onto your loan. Paper fees and etc can be waived if you make a big fuss over it.
99433
The answer is - it depends.  You can rent a place to live, or rent the money to "buy" a place to live.  With prices and interest rates where they are it may be cheaper to rent.  If you go to www.ASKMoneyMetrics.com and fill out the Mortgage Readiness form, we can do a rent v. own comparison for you, then you will know for sure.  Yahoo calculator link also below.  It usually does not make sense to go into debt just to lower your taxes.
1071060
I'm not sure about your question--which is better?\n\nWhen you have a mortgage, early on the bulk of the payments are interest, and you can deduct that amount on  your income tax.  A good deal.
708117
Great that you are planning such a wise investment path. I started exactly the same way many years ago. And I'm doing quite well now. My advise to you is go ahead and buy that duplex building. But rent both sides out instead of living in one side. Find urself a cheaper bachelor's apartment to live in. Likely you can get more rent from one of ur duplex than it cost you to rent a bachelor's. You will make more money each month because of the difference. \nYou may say that you only make $30,000 a yr.. but don't forget that when you go to the bank with a proposition to buy and rent the entire building out.. ur yearly income as viewed by the bank is now much more coz they will factor in ur potential income from the duplexes. This allows u a greater debt/expense ratio. and allows you to buy more. \nThere are other good reasons too for not being too quick to move into one side..  income tax for example, because u are not living in the building.. the entire interest on the mortgage becomes an investment expense. Also, it's likely that where you live.. there are better tax advantages to showing u are also a renter. \nIn time, as you buy more and more buildings.. you will be able to choose a house of ur own. But for now, make the most of "all" ur money, live below ur means.. and invest invest invest. \nImportant concepts to understand, balance and use to their most potential are; Ur networth, total assets, debt service ratio and income (both present and potential) debt service ratio is usually the most common limiting factor. ( and keep a watchful eye on interest rates) and know ur local realestate trends and be ur own best forcaster of future trends. As they say, "buy low, sell high"\nCoz in the end, most of ur money will be made on capital gain rather than rental income. ( rental income simlpy facilitates debt expense requirements from lenders )\nChoose a good banking agent.\nAs a realestate investor, ur bank becomes ur greatest partner. Choose an agent that has confidence in you, is knoledgable about realestate and is not afraid to stick his/ her neck out for you.\nBest of luck to you.
1127036
Real estate is a super huge thing It was a better investment for me than stocks as I was always able to use my investment . Can you eat stocks or live on them? Be careful because there are ways to gain and ways to lose. Don't ever borrow too much or it will all disappear. Hey why not just go into money lending?
40646
Property is the best investment,so if you've got the financial ability buy two houses.You can't go wrong.
319248
The equity in real estate is better, since cars are apt to either go missing or be destroyed, making the odds of a repo smaller, whereas a house the odds are much better.\nIt is always on the mind of any lender when making a loan, the "What If" clause if they need to recover their money.\nHope this helps\nJohn
73356
If you have good credit the both of you should get approved, but here is the kicker buying a house is a huge comittment and from personal experience if the two of you are not for sure that you can handle such an investment I would not do it. Also If one or the other defaults in paying half of the house payment the other is still responsible for the payment and if you split you either have to buy their part, sell your part or both put the house up for sale and pay the remainding balance on the home and if any money is left over then you have to split it. No being engaged don't make a difference. Remenber that if you decide to do this that you will be in a loan for 20, 30 or even 40 year loan. Before you make a decision throughly talk this over and exhaust every option that you have and find the best mortgage rates and loans possible.  Hope things go well. BIG DECISION
1140204
depends on your lifestyle, you like to move around, rent , if you are looking for something set then make the jump on something while the market is down then renovate and sell. or stay which ever. apprasials are going up for taxes, that is something to think about talk to a realitor, but they get about 6% of sale price and dont think about owner finance its not good for that. good luck
753543
I'd say the most important thing is to get any outstanding debts paid off first if you can.  That will then obviously reduce your total monthy payments and then may give you a change to get a mortgage with less monthly payments or one for more money.
214114
Home Loan is the loan taken to purchase a Home, Mortgage is the loan taken against a property as a collateral security..
18736
Buy. Right now, even an investor will get positive cash flow by buying and renting the house. The great thing is that you get better loan terms (Owner Occupied) a tenant that you trust (yourself!) and in addition to that, there is projected appreciation for houses in the South.
57108
I can't answer specifically about the Texas real estate market, but I can speak about loans in general. Debt is not intrinsically bad, but it is very easy to misuse.\n\nThe short answer: if you are not going to invest the money you would have on hand if you took a loan, just pay cash. If you are savvy enough to calculate the cost of the loan, and weigh that cost against other investments, you might want to take the loan. (To the point of the above answers, you have to be very honest with yourself about your investment savvy... if you really know what you're doing and are highly confident about your return, that's one thing, but if your investment strategy involves undiversified risk, don't do it.)\n\nLong answer below...\n\nWhen you buy a home, it is really an investment. Ideally, the price of the home will go up, so you can eventually sell it (or at least count it among your total net worth). So think of it as part of your investment portfolio.\n\nThere are then two things to consider: (1) do you want to diversify your portfolio so all of your money isn't sunk in the house, and you can spread it amongst other investments? (2) Will your non-house investments outperform your house, with the added handicap of the interest rate you're paying on the mortgage?\n\nThe actual calculations depend on the interest rate you're getting. Be especially careful if you are getting a variable rate mortgage, as interest rate increases could chnage your calculations. If you are getting a fixed, this is less dangerous, and you can even calculate the total cost of the loan quite simply.\n\nEdit: good point by the person below, they're correct in that tax considerations may be the biggest thing here. I'd vote for them.
501630
With commercial properties, it is more of how much the property makes, not you.\n\nIf the property has good cash flow, it is easier to get the loan.
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
431671
Basically your bank will loan you money based on the value of your property. There are loan ratios so lets say they have a 10% ratio (I think thats normal although others demand more or less depending on the area). That would mean you can borrow up to 90% of the value of the house. If the house is 100K you could borrow 90K. Now if you only owe 50K because you bought it a a few years back and it has gone up in value then your bank will lend you up to the 90K (or an extra 40K) for you to do whatever you want with. Its a cheap way to finance debt for purchasing things like cars, holidays, extensions...than using a credit card or personal loan BUT it means you are putting those things under your home loan and if you dont or cant pay then they reposses your home. You would start by going to your bank and having the home valued by a professional they recognise to see how much you could borrow. A good bank will pay for this service for you as long as you take out a loan with them. You generally set up a new loan (which means a new fee) and then your back to normal. Your home loan repayments will go up but they should be able to calculate these for you so you know what to expect. Remember interest rates are on the rise so factor that in. Happy spending.