Should You Use Retirement Funds to Buy a House?

Should you use retirement funds to buy a house? Borrowing from a 401(k) to buy a house can be a bad move. More in today’s Real Estate Minute.

If you have to borrow money from your 401(k) or other retirement accounts to fund your down payment – don’t do it – it’s just not worth it.

I know you might feel desperate when you’re scraping together cash for your down payment, but I can’t recommend raiding your retirement accounts to get it. Remember: You can borrow money for a house but no one will lend you a dime for your retirement.

YouTube Preview Image

If you do borrow from your retirement funds, make it a small percentage and pay it back within a few years with interest. You also should keep putting money into your 401(k) until you max out.

The bottom line: look elsewhere for cash before you tap your retirement accounts. If you have to risk your future to pay for a house, it’s not the right house.

Check out our other posts to help you as we rebuild America, one house at a time.

Rate This Article
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Related Topics
, , .
View our other articles that are related to this post.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating please contact us.

Leave a Reply

Your email address will not be published. Required fields are marked *