Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

Happens all the time. And lots of other people offer cash and get a mortgage before closing.

Mortgage rates are so high!
Will people really get a better return investing their cash?

S&P 500 is up about 25% in the past year, so anyone who decided to not get a mortgage because of a 6% interest rate didn't do themselves any favors. Buying a $2 million house without a mortgage exactly one year ago, as opposed to getting a $1.6 million mortgage, would mean that you screwed yourself out of nearly $400K in just the past year.

Plus, in case of a need for immediate liquidity, it's generally not advisable to have high amounts tied up in illiquid assets like real estate. The mortgage interest deduction tilts the equation even further in favor of getting a mortgage.

Rates are high

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

We bought the house with cash and the day after closing applied for a mortgage. It’s not complicated.

We just used an asset depletion loan from our brokerage and made an all cash offer. Way better terms/interest rate than getting a regular mortgage. Don’t even have to have earned income to qualify (we only have passive income ). Just have to have the assets to back it up. Approval was immediate.😁

What are you talking about?

“Asset depletion” is just another way a lender qualify you for a mortgage when you don’t have the income to qualify but have the assets. In both cases you’re still getting a mortgage and the interest rate is the same.