Mortgage
Are you dreaming of buying your own home and wondering about how you’ll save for a down payment? You're not alone. Some people think about tapping into their 401(k) savings to make it happen. But before you decide to dip into your retirement to buy a home, be sure to consider all possible alternatives and talk with a financial expert. Here’s why.
The data shows many Americans have saved a considerable amount for retirement (see chart below):
It can be really tempting when you have a lot of money saved up in your 401(k) and you see your dream home on the horizon. But remember, dipping into your retirement savings for a home could cost you a penalty and affect your finances later on. That's why it's important to explore all your options when it comes to saving for a down payment and buying a home. As Experian says:
“It’s possible to use funds from your 401(k) to buy a house, but whether you should depends on several factors, including taxes and penalties, how much you’ve already saved and your unique financial circumstances.”
Using your 401(k) is one way to finance a home, but it's not the only option. Before you decide, consider a couple of other methods, courtesy of Experian:
No matter what route you take to purchase a home, be sure to talk with a financial expert before you do anything. Working with a team of experts to develop a concrete plan prior to starting your journey to homeownership is the key to success. Kelly Palmer, Founder of The Wealthy Parent, says:
“I have seen parents pausing contributions to their retirement plans in favor of affording a larger home often with the hope they can refinance in the future… As long as there is a tangible plan in place to get back to saving for their retirement goals, I encourage families to consider all their options.”
If you’re still thinking about using your 401(k)-retirement savings for a home down payment, consider all your options and work with a financial professional before you make any decisions.
Stay up to date on the latest real estate trends.
Mortgage
Let’s connect so you have an expert on your side to explain everything along the way.
New Listing
4 beds | 2 baths | 2,364 sq ft
Mortgage
Mortgage rates have been declining for seven straight weeks now
Mortgage
Here’s the truth: waiting for the right moment could cost you in the long run
Mortgage
Nationally, prices are up nearly 60% since 2019
Mortgage
How Return-to-Work Policies Are Impacting Housing
Mortgage
By understanding your home’s condition ahead of time, you can take control of the process
Mortgage
To make sure your house gets in front of these motivated buyers, let’s connect.
Mortgage
When searching for a home, you don’t want to skip over new builds as an option
You’ve got questions and we can’t wait to answer them.