Use Condo
Posted on Saturday, April 3rd, 2010 at 12:38 amUse Condo
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 CAT CONDO TREE HOUSE LOG CABIN COULD ALSO BE USED AS DOLL HOUSE $60.00 Time Remaining: 19d 13h 8m Buy It Now for only: $60.00 |
 47 CAT CONDO never used $49.99 Time Remaining: 6d 19h 31m Buy It Now for only: $49.99 |
 Pretty Scratcherpet cat toy for use with condo tree $7.00 Time Remaining: 19h 41m Buy It Now for only: $7.00 |
 STick and ball pet dog cat toy for use with condo $10.00 Time Remaining: 2d 19h 41m Buy It Now for only: $10.00 |
 Pretty Scratcherpet cat toy for use with condo tree $7.00 Time Remaining: 12d 13h 14m Buy It Now for only: $7.00 |
Can I use my 401K as a downpayment on a condo?
I am 43 y.o. and want to use my 401K (in part or whole) as a downpayment on a condo. If I put every penny I withdraw towards the downpayment, will I still have to pay penalties and interest?
You can not make a withdrawal from your 401(k) for home-buying expense without the 10% additional penalty. You would be able to take out a loan on the money, but then you'd be paying payments to that loan plus your new mortgage. The interest rate on the 401(k) loan will more than likely be higher than your mortgage rate.
In addition, you will be missing out on additional tax-deferred growth on the money out on loan.
Bottom line, if you can find other means to pay for your new condo, do it. Retirement plans are good alternatives but should not be the first choice.
Ron, Chartered Financial Consultant
