I am considering buying a new home, and I want to find more
information on whether I should get a mortgage or pay the lumpsum
(assuming I can afford it).  Most of the articles out there are on
"rent or buy", that's not what I'm looking for.  Articles, guides, or
some sort of calculator appreciated.

Hello py2,

I can appreciate your dilemma. You're right, there isn't too much on
the web about paying cash up front for the purchase of a home.

Here's a helpful article that examines paying cash for a home vs
taking out a mortgage.

Will I be richer at 65 if I pay cash now?
http://www.mtgprofessor.com/A%20-%20Purchasing%20a%20House/will_i_be_richer_at_65_if_i_pay_cash_now.htm

Please note that you can leave a question at the above site. There is
a lot of good material at that site if you look around.

Here's a calculator that will help you explore the effects of
investing your money vs paying off a loan early.  Looking at money you
can save by pre-payment should give you an idea whether you want a
loan at all.

Prepay vs. Investment Calculator
http://www.mortgage-calc.com/prepayment/pre_prepay_vs_invest.html

In the faq at Mortgage Expo's web site, there is a question about
pre-paying one's mortgage. According to that faq, you will save
approximately $3 for every $1 you pre-pay on a 30 year mortgage. 
(Please see the link below.)

Mortgage Expo.com FAQ (Scroll down to last question)
https://www.mortgageexpo.com/home.cfm?SC=BRM790YLW

Here are some additional links which may be of interest to you.

Prepayment Mortgage Reduction Calculator
http://www.mortgage-calc.com/prepayment/pre_prepayment_mortgage_reduction.html

Loan Calculator & Amortization
http://www.bankrate.com/brm/popcalc2.asp?nav=mtg&page=calc_home

How much house can you afford?
http://www.bankrate.com/brm/calc/newhouse/calculator.asp?nav=mtg&page=calc_home

Mortgage-Calculators
http://www.mortgage-calc.com/

When is Early Payoff a Good Investment?
http://www.mtgprofessor.com/A%20-%20Early%20Payoff/When_Is_early_payoff_a_good_investment.htm

Good luck making your decision!
fsw

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Clarification of Answer by fsw-ga on 17 Jul 2002 09:14 PDT

Oops, I see there is a problem with the link I gave you for the
Mortgage Expo faq. To see that faq, please go to the link below

https://www.mortgageexpo.com/home.cfm?SC=BRM790YLW 
 
and then select FAQ's from the middle drop-down box labeled Mortgage
Tools. From there you can scroll down to the last question. I'm sorry
for not realizing that was a framed page!

fsw

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Clarification of Answer by fsw-ga on 17 Jul 2002 09:42 PDT

Hello again,

I just found another site that might interest you. It's very short but
to the point.

Don't pay cash, even if you can afford it 
http://michaelbluejay.com/house/nocash.html


I also wanted to recommend Motley Fool as a good site for financial
advice.

Retirement Planning: Your House
http://www.fool.com/Retirement/RetirementStep8.htm

Motley Fool Home Center: The Downpayment
(You can also post a question on their message board)
http://www.fool.com/homecenter/finance/10.htm

fsw

I can't find any articles to back this up, but from my expirence, if
you can afford to buy a house out-right, then you should do it!
Getting a mortgage will greatly improve your credit rating, but if you
can afford to shell out $100k+ your credit rating is probably not
going to be an issue in anything else you do...
Not to mention the interest you would have to pay if you finance, for
most 30 year mortgages the interest is more than the principal, even
at these times of very low rates. So it will actually save you a lot
of money in the long run to pay for the house up front (or at least
very quickly)

Here is another way to look at it.  If you buy a house, cost 100,000. 
You put down 20,000, save the 80,000 and invest it wisely.  If you buy
property in an area that is increasing in value, and most do, your
investment will increase.  In the meantime, the government will be
helping you pay your mortgage payment by giving you a deduction for
the interest and taxes you pay on the property.
Ten years go by....you sell the house for 150,000.  Not only has the
payment reduced your tax bill, given you a place to live, you will now
have made about 50,000 on that 20,000 investment.  Now that is a great
return and not unrealistic in today's market.  Expenses in maintaining
a house do not change, whether you pay for it in full or mortgage it. 
The reason I suggest the 20 percent down is that most lenders require
that for no mortgage insurance.  Shop around, some will do it for 15
percent down.  Then you will have even more to invest.