So I sold my previous house a month ago for $255,000. After paying off my mortgage, I now have about $200,000 in my savings account. I don't really want to invest the money at this time. I'm buying a house for $185,000 next month. I haven't applied for a mortgage yet. My plan was to pay cash and then get a mortgage after since mortgage rates are so low. But now I'm thinking of just skipping the mortgage all together.
Thoughts? I'm pretty risk averse and the least risky thing seems to be to get a mortgage for like $100,000, so I have a huge emergency fund in case I lose or quit my job.
Other info:
I don't have any other debt, but I do have a $1000/month lease on an apartment that I'm going to have to pay until I find a subletter.
My 401k and Roth IRA are fully funded. I can probably replenish my savings at $3000 a month once I sublet the apartment ($2000 a month before that).
Anyone have a compelling argument for getting mortgage or not? Am I forgetting something?
I would probably get a 15 year mortgage for $100,000 with an interest rate around 2.5%. I'd be paying about $200 a month maximum in interest. There are also closing costs for the mortgage of a few thousand dollars.