OO Bank mortgage or pay CASH

[Joseph L.]

Hello,

Looking for some insight/thoughts, I am buying a 45K condo and was going to go with OO mortgage 25%down 3.875% interest and prob $3-3.5K in closing cost.

Would you rather do that or pay cash for it and then get a HELOC to get the money back. My bank says they will do a 75% 4.5% interest 20yr. heloc against recent comps. Recent comps have been REO's around 45-50K. I would have to wait 6months to do a HELOC and the bank pays the closing cost up to $400 for it.

Would it be worth to pay cash in order to save on the closing cost. Currently have the money in the bank and occasionly day trade with it.