By Rob Basso on
3/17/2011 11:53 AM
Guest Post By Lloyd J. Streisand, Sterling National Mortgage Company
Mortgage or Cash Purchase?
Are you planning to purchase a home in the near future? You may be moving and have ample funds to make a cash purchase. Obviously, purchasing a home in cash will allow you to have 100% equity in your property upfront and, yes, the thought of no monthly mortgage payments sounds very appealing! But you should know that there are a lot of compelling reasons not to purchase a home for cash. Before you make your purchase, consider the following benefits of holding a home mortgage:
-Significant Tax Deductions
When financing a mortgage, you can deduct 100% of the mortgage interest paid from the inception of the loan up to certain prescribed limits, as defined by the internal revenue code. The deduction of interest payments can yield significant tax savings. And, if structured correctly, can allow you to maximize on cash flow available to you through retirement.