Should I raid my Roth IRA to put more down on a townhouse?

[tnitsuj]

I am considering taking out the two years of contributions I have in my Roth to put more than the 10% I have in cash down for a townhouse I am buying. That would lower what I have to borrow on a LOC to avoid paying PMI...anyone do this? How hard was it? pros/cons?

 

[SchrodingersDog]

Do anything you can to avoid paying PMI, such a ripoff. I had to put down 20% to do it though.

 

[tnitsuj]

Originally posted by: SchrodingersDog
Do anything you can to avoid paying PMI, such a ripoff. I had to put down 20% to do it though.

well with an 80/10 loan which I already have enough down to do..I won't have to pay PMI. I will have to take out a HELOC at prime for the 10 though.

 

[KLin]

Originally posted by: tnitsuj

Originally posted by: SchrodingersDog
Do anything you can to avoid paying PMI, such a ripoff. I had to put down 20% to do it though.

well with an 80/10 loan which I already have enough down to do..I won't have to pay PMI. I will have to take out a HELOC at prime for the 10 though.

at least you can write that interest off on your income tax return if you're able to itemize. If you were to pay PMI, then you couldn't write it off.

 

[tnitsuj]

Originally posted by: KLin

Originally posted by: tnitsuj

Originally posted by: SchrodingersDog
Do anything you can to avoid paying PMI, such a ripoff. I had to put down 20% to do it though.

well with an 80/10 loan which I already have enough down to do..I won't have to pay PMI. I will have to take out a HELOC at prime for the 10 though.

at least you can write that interest off on your income tax return if you're able to itemize. If you were to pay PMI, then you couldn't write it off.

true...it really hurts to pay over a half million for a townhouse though. This market is fvcking crazy. I think I am going to let the roth sit..have to talk to some folks 1st and get some more advice.

 

[KLin]

Originally posted by: tnitsuj

Originally posted by: KLin

Originally posted by: tnitsuj

Originally posted by: SchrodingersDog
Do anything you can to avoid paying PMI, such a ripoff. I had to put down 20% to do it though.

well with an 80/10 loan which I already have enough down to do..I won't have to pay PMI. I will have to take out a HELOC at prime for the 10 though.

at least you can write that interest off on your income tax return if you're able to itemize. If you were to pay PMI, then you couldn't write it off.

true...it really hurts to pay over a half million for a townhouse though. This market is fvcking crazy. I think I am going to let the roth sit..have to talk to some folks 1st and get some more advice.

ouch. where do you live? San Francisco or New york city?

 

[tnitsuj]

Originally posted by: KLin

Originally posted by: tnitsuj

Originally posted by: KLin

Originally posted by: tnitsuj

Originally posted by: SchrodingersDog
Do anything you can to avoid paying PMI, such a ripoff. I had to put down 20% to do it though.

well with an 80/10 loan which I already have enough down to do..I won't have to pay PMI. I will have to take out a HELOC at prime for the 10 though.

at least you can write that interest off on your income tax return if you're able to itemize. If you were to pay PMI, then you couldn't write it off.

true...it really hurts to pay over a half million for a townhouse though. This market is fvcking crazy. I think I am going to let the roth sit..have to talk to some folks 1st and get some more advice.

ouch. where do you live? San Francisco or New york city?

DC metro area

 

[xgsound]

Per Dave Ramsey, it's hard to beat the future investment value of a Roth IRA. Sooo
1. leave Roth intact
2. Do not pay PMI, save more or spend less if necessary
3. Consider a 15 year mortgage (locked in) with 70% or less borrowed. You can demand an excellent rate then, which will pay many dividends for many years. (less condo ?)

If interest rates go up (how could they go down ?), this may flatten real estate prices. When there is 500K involved, this can become a burden easily.

Jim

 

[tnitsuj]

I am considering a 15 year mortgage, and no way in hell will I pay PMI.

 

[DrPizza]

I'm still working on it...
definitely avoiding PMI though...

 

[dquan97]

I got an 80/20 loan to avoid PMI...and don't touch that Roth IRA!

 

[kermalou]

you can take out up to 10k for your first home purchase only without penalties, I believe.

 

[Triumph]

Originally posted by: tnitsuj
I am considering a 15 year mortgage, and no way in hell will I pay PMI.

Where the heck do you work that you can afford a 15 year mortgage around here? You must have dual income or are pulling in some hefty numbers.

 

[Gooberlx2]

For those of us who are uneducated about buying houses, but would like to sometime in the future, can someone please explain:

HELOC
LOC
PMI
and the way the loaning system works with all this?

...why don't they teach THIS kinda crap in school? "Buying a house: 101"

 

[mwtgg]

Originally posted by: Gooberlx2
For those of us who are uneducated about buying houses, but would like to sometime in the future, can someone please explain:

HELOC
LOC
PMI
and the way the loaning system works with all this?

...why don't they teach THIS kinda crap in school? "Buying a house: 101"

Text

They didn't teach it because they figured "Ancient Civilizations 101" is more important.