Hi folks,
First time home buyer here. Currently under contract, bout to become poor. I'm a 2nd year attending. The fiance and I have been renting for 2 years and felt ready to make the plunge. We live in a fairly high COLA, and the best loan we could find still required a decent down payment on a physician loan.
As of now I am able to cover the down payment with cash savings over the past 2 years, but just barely. So that brings up the question of whether I should tap into possible savings/retirement accounts.
I currently have about 100k which is split between a taxable brokerage, Roth IRA, and company 401k. Right now I'm considering putting aside about 10k for additional expenses after moving in. I know I can take out 10k from my Roth without penalty. I've heard through conversation that I can take out money from my 401k and "pay myself back interest." I also have my taxable brokerage that I could sell stocks from and pay long term capital gains on.
Ideally I wouldn't be touching any of these accounts. The reality of living in a high COLA means that I may have to unfortunately. My questions is: which account type would be best to take from in order to complete the house purchase?
Thanks in advance.
First time home buyer here. Currently under contract, bout to become poor. I'm a 2nd year attending. The fiance and I have been renting for 2 years and felt ready to make the plunge. We live in a fairly high COLA, and the best loan we could find still required a decent down payment on a physician loan.
As of now I am able to cover the down payment with cash savings over the past 2 years, but just barely. So that brings up the question of whether I should tap into possible savings/retirement accounts.
I currently have about 100k which is split between a taxable brokerage, Roth IRA, and company 401k. Right now I'm considering putting aside about 10k for additional expenses after moving in. I know I can take out 10k from my Roth without penalty. I've heard through conversation that I can take out money from my 401k and "pay myself back interest." I also have my taxable brokerage that I could sell stocks from and pay long term capital gains on.
Ideally I wouldn't be touching any of these accounts. The reality of living in a high COLA means that I may have to unfortunately. My questions is: which account type would be best to take from in order to complete the house purchase?
Thanks in advance.
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