Flying SquidMy plan is to crumble with it.
MsPenguinetteFun fact: you can withdraw from your 401k. While there is a hefty tax penalty, you still can do it. Maybe you can get a down payment on a house or pay off student loan debt. Just make sure you withhold taxes from your payout. Don’t get caught with that bill at tax season
Especially handy if you have a job with good matching and instant vesting. Of course, this is not finacial advice, but it is an option that exists.
You can use $10k from your 401k for a down payment on a house with zero penalty. If you’re married, then your spouse can do the same. So now you have $20k for a house down payment! With an FHA loan you can buy with as little as 3.5% down, which your $20k should cover 3.5%. Weee!
cm0002Why even bother with a down payment, lots of loan options out there for 0%
Those are usually harder to get and carry higher interest rates.
EtherWhackIn most cases, it’s better to save up for a down-payment to cut off a chunk from your loan along with the portion of interest with it. You also tend to be able have loans with better options available to you.
DeceptichumHeh, here in Australia I’d need over $100,000 for a down payment.
Many are 20% here, so really I’d need over $200,000 just to make the initial payment.
You need that here in the USA too, but with an FHA loan, or a first time buyer program on a conventional loan the percentage needed is reduced. Although they hit you with some pretty hefty fees when you take advantage of those programs. The FHA charges an up-front fee, and conventional loans hit you with PMI which equates to hundreds of dollars per month.