Using cash to avoid a jumbo mortgage

When buying a home, choosing how to finance it can be the biggest decision to make. Recently, buyers who are interested in luxury homes, starting in the $400k range, are using different strategies to save money. Some are putting more cash down, lowering the overall mortgage and thus saving interest, while others are paying the full asking price in cash. Both options, including others, have several benefits. These include a quick buy due being able to avoid all of the financing paperwork and tax deductions on interest payments, as well as avoiding a jumbo mortgage. Although there are obvious benefits to using cash, it is still wise to consider other factors when determining the best way to finance, such as the amount of liquid assets the buyer has, current interest rates, and the local market. Read the full article here: http://www.marketwatch.com/story/using-cash-to-avoid-a-jumbo-mortgage-2012-10-26