I often see those folks that are financially free to purchase their houses in cash so that the banks won't have the interest from paying that for so many years.
Only if you are rich enough to throw in lump sum, otherwise it wont happen. The actual price for houses is actually high enough for most people to afford and not alot would be able to afford to purchase it in cash
Not only the rich can do that but those that have a successful business and they're at the middle income. Yeah, it's true that the house prices right now are quite expensive, and can't afford to pay in full. But that's why there are house mortgages and that's a way for the banks to give loans to those who want to purchase their houses but that's with interest. And not everyone who dreams of having their own home can be eligible for those bank loans.