FACTS
- Currently rent
- Looking to buy $600k house (that is VERY CHEAP for our area...)
- Have $100k saved for down payment + closing costs - closing costs will be in the ballpark of $20k, where we live, so we'll assume $80k will be for the down payment
- Have $250k saved in employer 401k, roughly evenly split between traditional and Roth
QUESTION
Does it make sense to withdraw ~$40k from my 401k to get us to a 20% down payment and thus avoid several years of paying $300/month in mortgage insurance? The extra 10% tax penalty on the withdrawal would amount to ~$4k, which, I would think, would be more than offset by not having to pay mortgage insurance.
Thoughts? I'd prefer not to do a 401k loan because the loan repayment would up our monthly expenses considerably, and also cut into my ability to take full advantage of my employer's 401k match.
Also if anyone knows of a quick way to come up with $40k that would be cool.
Submitted November 05, 2021 at 10:37PM by Cartrouble2k https://ift.tt/3BPMqFr
