I know the answer should be "Absolutely Not" but here's why I ask. I currently rent a 2 bedroom apartment for myself, my wife, and my 2 boys (9 & 5 in age) in CA. The kids are getting to the age that they need more space. Renting a 3 bedroom apartment in the area where we currently live will cost an additional $250-$350 a month bringing our rent to $2200+. Rent continues to rise at a rate greater than my annual work raise, among other expenses, making saving money difficult. If I took $100K+from the 401K I wouldn't have to pay any early withdrawal penalty since the withdrawal is for a first-time home purchase. Yes, 20% is held for taxes. I am 34 and the company I work for matches contributions. I can grow the 401K with ease by the time I plan to retire. With a FIXED (not exotic) house payment, I'll be able to contribute at a greater percentage in future years. I need the large down payment to achieve an affordable mortgage. Advice, NOT SOLICITATIONS FOR BUSINESS, is appreciated.
2007-01-07
09:22:52
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7 answers
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asked by
BustedDreams
3
in
Renting & Real Estate