Is a mortgage a useful stepping stone when trading one house for another?
April 20, 2012 2:22 PM Subscribe
Should I consider a mortgage when I want to sell my paid-off house and buy a new one, outright?
posted by mantid to work & money (7 answers total)
We would like to sell our house, which we have paid-off, and buy a new home (for slightly less than we get for this one) in a new town. My wife wants to take out a mortgage to buy the 2nd house (budget based on a conservative estimate of what this one is worth), and then worry about selling our current home. I want zero risk, and do not want to give a dime to the financial companies if I can avoid it. I would like to hear arguments on both sides. I am open to the idea that my lemonade-stand understanding of economics is overly simplistic, and mortgages can be useful tools in times like these. At the same time, I fear she is not being cautious enough about the possibility of this home not selling, and is wanting to gamble with our home.