Throwaway because, shame.
My SO and I are debating using my 401K savings to put 3% down on a very modest condo in a great town with great schools. We are in a very high cost of living area, and the town is one the most stable and popular in our area. Though we both have had steady jobs, the combination of growing up poor, having student loan debt and paying an arm and a leg for daycare in our area (one child, no plans for more) have made saving very difficult. I have a 401K and my SO has a 403B and a pension. Is it foolish to take basically all $11k (after taxes) out of my 401K to use as a 3% down payment? I am in my early-30s.
Even with the low down payment, adding in taxes, PMI, HOA and etc our payment on a 30 year mortgage for a 250k condo will be comparable to renting. We would also have a little cushion for those "oh shit the dishwasher is leaking" moments. We would plan to be there for at least 5 years.
So, my question: is this a foolish, short-sided move or is this just what we need to do to stop renting and get on the path to ownership? Any help is appreciated.
Submitted April 18, 2017 at 10:23AM by TArent4lyfe http://ift.tt/2pvNq0a
