We paid cash and I love the security. But our house is not that expensive.

Just got offer accepted and our financial advisor said do 100% financing to keep cash for other types of investments. But we are business owners so can be different than straight w-2 employees.

Compare the interest rate on your asset backed loan (not deductible)—see eg TD or Schwab— to a jumbo ARM rate (deductible but probably not entirely thanks to SALT cap and TCJA $750K cap).

For the ZOMG jumbo ARM people…. Who’d you rather lend to? A jumbo ARM to a couple with assets 2x the mortgage who is debating paying cash, or a conventional 30 year fixed loan to a couple who needs 100% of both incomes to qualify and with a few months of reserves tops? Because no one freaks out about the latter for some reason.

Jumbo ARM... what could go wrong?

If you could pay cash for a house today, would you do it or would you borrow? I’m noticing jumbo rates are lower than non-jumbo. Would you go for a jumbo loan to get a lower rate? We’ve always had a mortgage to free up capital, but with interest rates on the rise, wondering if we should continue with this strategy.