If you have equity in your current home and want to significantly lower your expenses in retirement, it might make sense to pay for your new home with cash (the proceeds of the sale of your home). That way, you won’t have a mortgage payment — although you’ll still need to pay for home insurance, property taxes and maintenance.Another benefit to paying cash: You could have a leg up on other buyers. This might make the difference between getting the home you want as you age, versus settling for a home because you were outbid on all the others.