[Moneyguy1]

However....Since the first years of a mortgage are massively comprised of interest, there is lost opportunity to be considered.

Assume a mortgage of $100,000 at 6% (easy to figure). Monthly payment for 30 years = $599.55. Total for 360 payments = $215,838. Interest paid = $115,838.

Now not everyone can have a F&C home, but what would that $115,858 gain you over the next 10 or 20 years if invested? What if the $599.55 were put into something as mundane as a Mutual Fund each month?

Then, assume you can put down 20% and reduce our hypothetical mortgage to $80,000. THis would result in a monthly payment (for 30 years) of $479.64. Now...investing the differential of $119.90 each month for the next 30 years would result in what kind of nest egg? Where would the "break even" point be? In under 10 years the accrual would begin to be in favor of the higher down payment and lower m onthly payment, as long as one has the discipline to religiously invest that differential. No to mention that the interest paid over the 30 years has been reduced to $92,670.40.

THat is why I say it is not a cut and dried situation that fits all cases.

BTW...Your payments that you were making during the time your property (hopefully) went up in value by $100 k must be "modified" to reflect the interest paid which is a loss in investment circles (cost of doing business). Then, if you paid cash, factor in the investment of the amount monthly that you would have been paying to the lender. The figures change significantly since that money is making you money as well.

Using my rather simplistic model of the $100k @ 6%, five years worth of payments would result in $35,963 that you have invested had you paid cash.

Different paths to the same goal.