any ACCOUNTANTS here? a mortgage question.?

Question

i am a single person and make about 60K a year. i have 300K in cash and am contemplating buying a co-op unit worth 200K. would it make more financial sense for me to pay for the co-op unit in cash or take out a mortgage?

Answer 1

It depends upon the rate you can get AND your investment skill. If you can borrow the funds and reinvest the 200 K at a higher rate then you are much better off borrowing, if you make appropriate allowances for taxes..