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Paying Cash for a Home: Why It Will Ruin You

Now, in 1981 for example, when mortgage rates went as high as 18.45 percent, the urgency to pay ahead of time was more of a reality. But still, there is an asset tied to that debt, one with value that can fluctuate. The housing market doesn’t always go up!

To build more equity, buy smart, put down 20 percent, get a great, low fixed-rate and stay put as long as you can. Many of us have mortgage rates at or below 7 percent, and that is historically cheap money. Pay off credit card debt first. Build your emergency fund. And invest, invest, invest. Your money is too hard earned to gamble on one asset. And for most of us, the tax deduction on our mortgage interest just knocks out what we’re paying for the mortgage. Now, where are my gloves?