Buy a Home With Cash or Take Out a Mortgage Anyway?

With a mortgage rate of 6.5-7.5% in 2024, is it better to buy a house with cash or take out a mortgage anyway?
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[@victordelladone795]

Folks with a paid off home as a majority do not take out new mortgages ever after the original is paid off. I would pay off the new home as soon as possible.

[@marylandmike7655]

Get a 1st lean HELOC money is free to go in and out, gives you built in emergency fund! Park your paycheck in the HELOC

[@coolraul07]

Agreed. At that mortage interest, just put the $400K to the $420K house purchase. The remaining $20K can also be paid off IF there's enough liquid assets available that are both earning less than that mortage rate AND available without dropping emergency funds below acceptable levels. If not, mortgage the $20K with the shortest term feasible (based on rate and payment).
My mortgage is 2.5% APR, so it makes no sense to pay it off since even my HYSA are earning more than double that. Even when the HYSA rates go down, long-term CDs will still likely beat that for the foreseeable future. Same for my existing car notes (2.74% APR); no need to pay off earlier.