My unprofessional advice: Pay cash for the house if you can. Put asside money each month as if it were a mortgage into an investment of your choice. (Money market, CD, etc) Garaunteed investments from the bank are going to pay out less than the percentage of the mortgage. Mortgages are where the banks make the money to give back to investors. I think the old advice was based on the assumption that mutual funds "always" return 10% over a long period of time. That's obviously not garaunteed. Mathematically, the advice to invest and take a mortgage is sound. However, math does not take into account emotion or life changes. If something ever happens and you don't/can't make the "mortgage" payment to yourself, you are not in major trouble. All of this advice is dependant on other factors in your life, so don't follow any of our advice. Talk with someone that can see your whole situation. If you do take a mortgage, there is a trick I heard about. Take out a 30 year instead of a 15 year mortgage, but pay every month the same you would have if it were a 30 year mortgage. I don't know the validity of the trick, but it seems sound. The entire extra you pay each month goes towards the principle instead of some of it goinig towards interest if you had a 15 year loan. If you do see a professional, follow Ewizabeff's advice and see a fee only advisor. You pay them a fee for their advice instead of paying commission. The only way for the advisor to make more money is for you to come back for advice or to recomend them to others. This is a great incentive for them to give you honest advice that is in your best interest.