What if your next house didn’t come with a mortgage payment at all? It might sound a little far-fetched at first. But for quite a few homeowners, it’s actually more doable than you’d think.

According to the National Association of Realtors (NAR), nearly 3 out of every 10 homes being purchased right now are bought with cash. That’s a big jump compared to what we saw before the pandemic (check out the graph below).

So how are so many buyers actually making that happen? It really comes down to one thing: their home equity.

Think back to 2020 and 2021. Mortgage rates were incredibly low, and there weren’t many homes on the market. That mix sent home prices climbing quickly.

If you owned a home during that time, there’s a good chance it gained a lot of value. In some cases, it may have even built up enough equity to let you buy your next place in cash. The National Association of Realtors explains:

“ “. . . rising home equity has armed many existing homeowners with the financial leverage to make cash offers, allowing them to convert years of price appreciation into immediate purchasing power.”
”

— NAR

If you have enough equity, here’s why you might want to do it yourself.

1. Your Offer Becomes More Attractive

Sellers value certainty, and an all-cash offer removes one of the biggest unknowns in a transaction: financing. As Rocket Mortgage explains:

““Cash offers are attractive to sellers. Sellers often prefer to work with cash buyers if they can because they don’t have to worry about a buyer’s financing falling through at the last minute.”
”

— Rocket Mortgage

In many markets, offering cash can give you a real advantage.

2. You Can Close Faster

And because you’re not dealing with underwriting, lender approvals, or loan processing, closing happens much faster. Cotality puts it this way:

““Cash buyers have always enjoyed an edge over borrowers. They remove financing risk, reduce delays, and often close in days rather than weeks.”
”

— Cotality

If the person selling the house you want is already under contract on their next place or needs to move quickly for something like a new job, that fast timeline can be a huge advantage.

3. You Won't Have Monthly Mortgage Payments

When you pay cash, you skip financing, so you don’t have to worry about current mortgage rates, and you own the home outright the day you close. That’s a big deal.

No mortgage. No monthly bills. Complete ownership.

Having that kind of financial freedom can lead to some major lifestyle perks. Zillow explains:

““Paying in cash means you own your home outright. This eliminates the need for monthly mortgage payments, freeing up your finances for other priorities like savings, travel, or home improvements.”
”

— Zillow

4. You May Get a Better Deal

And here’s something that often surprises homeowners: cash buyers frequently end up paying less for the house.

According to Cotality, buyers who pay all cash usually spend about 9% less on a home than those who need a mortgage. That’s because some sellers are happy to accept a lower offer in exchange for a quicker, more certain sale with fewer financing hurdles. As Cotality explains:

““From a seller’s point of view, a lower but reliable offer can feel preferable to a higher one that may collapse weeks later.”
”

— Cotality

And that advantage increases every year (see graph below).

Is an All-Cash Move Realistic for You?

Not every homeowner will pay for their next house in cash, and that’s perfectly fine.

The bigger takeaway? The equity you’ve built could give you more options than you realize.

Whether it means downsizing and getting rid of your mortgage entirely, or just moving with more negotiating power, your current home might be what makes it all possible.

Bottom Line

Before assuming you’ll need another traditional mortgage, ask yourself one simple question: How much equity do you really have? The answer could change the way you see your next move.

Wondering what your home equity could do for you? Let’s take a look at the numbers and see just how much buying power you really have.