{"id":5149,"date":"2018-05-07T09:52:41","date_gmt":"2018-05-07T07:52:41","guid":{"rendered":"https:\/\/privateprop.wpengine.com\/?p=5149"},"modified":"2018-05-09T11:59:01","modified_gmt":"2018-05-09T09:59:01","slug":"cash-vs-mortgage-financing","status":"publish","type":"post","link":"https:\/\/privateproperty.ng\/news\/cash-vs-mortgage-financing\/","title":{"rendered":"Cash Vs Mortgage Financing: Which is the Better Option?"},"content":{"rendered":"

When you weigh cash vs mortgage financing, there are some crucial elements you need to understand before you make a decision on whether you are opting to make an outright payment for the house or if you would rather settle for a mortgage plan.<\/span><\/p>\n

To put you in a position to make a more informed choice, we will take a look at the dynamics of owning a property by either paying the cash value of the house or spreading your payment over a period of time via a mortgage loan<\/a>. This explains the concept of cash vs mortgage financing. We’ll take them one after the other. Let us start by looking at what it means to buy a house with cash as well as the pros and cons of this option.<\/span><\/p>\n

\"Paying<\/p>\n

Buying a House With Cash<\/h2>\n

When you buy a house with cash, you pay the seller cash to cover the cost of the house. The cash you pay covers the full payment of the house. For this payment option, you don’t need to raise funds through a bank or worry yourself with the headache of repaying a housing loan.<\/span><\/p>\n

Here is a scenario, if the selling price of a detached house in Lekki is pegged at N186 million, to buy this house with cash, you will have to pay the seller a minimum of N186 million for the property. The final figure will depend on whether this cost covers property documentation.<\/span><\/p>\n

\"Buying<\/p>\n

Pros of Buying a House With Cash<\/h2>\n

Let us highlight some of the advantages of paying cash vs mortgage financing when buying a house.<\/span><\/p>\n