Eli5<- what are the pros/cons of borrowing money from the bank vs paying cash when buying a house?

Question

And why would it ever be a good idea to borrow if you can pay cash and pay no interest to the bank?

In: 18

Answer 1

I thought about paying off my mortgage faster until I realized that $1 today would be worth more than $1 in about 5-10 years. I can do better things with that $1 today, and the 3-4 cents in interest that I’ll pay is less than what I’ll lose to inflation.

I can do better things with that money today, like keeping it around for an emergency, using it for my family and I to live a little more comfortably, or even gambling it in a retirement fund.