I was discussing with a few friends, and had watched a video of a contrarian advise. Take out a mortgage when purchasing a home, even if you can afford paying in cash.
I know there are no guarantees in life, but I believe the math assuming averages, does support this idea and was wondering about different perspectives.
As an example:
300k loan @7% for 30 years = $718,000
300k investment @7% for 30 years is $2,228,677
You would be better off taking the mortgage and Investing the cash you have. The difference in those dollars is based on the amortization of the loan, and the compounding of the 300k investment.
I know there are no guarantees in life, but I believe the math assuming averages, does support this idea and was wondering about different perspectives.
As an example:
300k loan @7% for 30 years = $718,000
300k investment @7% for 30 years is $2,228,677
You would be better off taking the mortgage and Investing the cash you have. The difference in those dollars is based on the amortization of the loan, and the compounding of the 300k investment.
Statistics: Posted by Bigbmn — Sun Sep 01, 2024 8:40 am — Replies 7 — Views 329