The Shocking Truth: Paying Cash vs. Financing Your House - Are You Wasting Money?

Alright, buckle up for some financial enlightenment. Ever wondered if it makes a difference whether you finance your home or pay cash? Spoiler alert: it doesn't. But how does that change your approach to big purchases? Let's dive in. Whether it's mortgages or self-financing, the cost can be identical. But who holds the power? I'll break it down, blow your mind, and leave you rethinking your financial strategy. Join the conversation below!
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Chapters:
00:00 Introduction
00:45 Finance with a Mortgage
01:25 Self Finance
02:09 Compound vs Amortized Interest
04:16 Things to Consider
DISCLAIMER: These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion without guaranteeing investment gains or losses. I get commissions for purchases made through links in my video description box. Thank you for watching!
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[@JohnMcDonough79]

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[@alanreyes6190]

Well I would pay cash for everything. Just that a house is $400k. It will take me forever to save uo that amount

[@radzer0966]

You make a solid point but the odds of the same rates are almost 0. Yea if you have a current mortgage and cash to pay it off you can be ahead. What whats going on right now tho who knows. Getting that mortgage would prob be impossible. I know they wouldn't for me for the amount id want. 800+ credit score, they hate 1099. So in my case i might be able to get something with 60-70% down.

[@JohnMcDonough79]

I know that’s what makes this even more compelling. The proper savings vehicle can out perform the cost of borrowing over the long term.

[@radzer0966]

@@JohnMcDonough79 if only we could lock in a great cd rate for a long term. Fed hasn’t lowered rates but the cd rates are dropping pretty quick now.

[@alexvampert]

Interesting video. What about tax deductions as a consequence of interest payments?

[@JohnMcDonough79]

That is another potential benefit to financing as opposed to paying cash.

[@mounirjamaaoui9780]

Risk factor is really not taken into account. 5%? Please show me where you invest. The market is crashing.

[@alanreyes6190]

An option is a money market fund like Vanguard "VYM" fund

[@JohnMcDonough79]

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