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I don't know why you want to put down so much cash on the house though, since a mortgage will give you some tax benefits, and with interest rates still low, you could probably earn more from your investments than you're paying in interest on your mortgage.

As for the tax benefit alone...

At most you'll save 45 cents (35 cents national income tax, 10 cents state income tax) out of every dollar spent on interest. That's helpful if you have no good alternative to paying the interest - but it still leaves you 55 cents in the hole.

And if you aren't in the top tax bracket, or if the state income tax rate is lower, or to the extent that your OTHER deductions are less than the standard allowance, you'll save less than that. Lots of people who are eager to preserve their tax benefits are saving less than 15 cents out of each dollar.

Now with the "you could probably earn more from your investments", that's a separate consideration, probably valid but harder to evaluate. (At the minimum, do take a fixed-rate loan with enough down that PMI is not required.)
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