If interest rates move low enough and you're looking to buy a home with cash, you may want to consider a strategy known as delayed financing.

This leverage strategy can both increase tax deductions (reducing your tax bill) and earn a spread between the cost of borrowing and your investment returns (using borrowed money to invest).

When structured properly, the interest on the loan is treated as investment interest rather than mortgage interest, meaning it is not subject to the $750,000 federal mortgage interest deduction cap.

Each year, investment interest can generally be deducted up to the amount of taxable investment income generated. If the interest expense exceeds investment income in a given year, the unused portion can be carried forward and applied in future years.

This strategy tends to be more compelling in lower-rate environments, where borrowing costs are lower and investment returns have a better chance of exceeding those costs.

As with most planning strategies, the details matter—timing, interest tracing, lender rules, and coordination with professional advisors are all important.

For educational purposes only. Not tax, legal, or investment advice.