[Shimpy]

We are planning on buying a new home around the first of next year and am confused on how to pay for it. I could pay cash for it pulling the funds out of an IRA, but would have to pay 25% taxes. Second, I could maybe make a 25% down payment and make payments. I don't plan on living 30 years to pay off the mortgage and am not concerned if the kids get a home not payed off that they can sell and come out ahead. I'd rather have the funds available in case of emergencies. We're still working and need to sell our home which I'll put on the market in Oct. I'd like to buy a home there before selling this one so we can move directly to it. After we sell it we'll be able to put a lot more down, but the mortgage will already be set and I'd hate to pay more to redo the mortgage to get a lower payment.
Also the bond comes into question, should I pay it off up front or make payments on it.
What I can't figure out is pay cash and spend 25% on taxes to take that money out of an IRA or pay a mortgage at 5 to 6 % over hopefully many years of retirement.