What's the ideal way to save up for a downpayment on a house?

[DivaJen]

Re: What's the ideal way to save up for a downpayment on a house?

Admit it, it was hard giving out that $11,000 right? I know it would be for me. STILL, it's what I would have done if I had it.

No, it really wasn't. I've always been a saver and get a thrill from watching the balances go up. I swear. And looking back, seeing how my house has gone up two to three times in value (not that I could have predicted this area would go up so drastically), it was worth every penny.

[cbmeeks]

Re: What's the ideal way to save up for a downpayment on a house?

smart move....kudos to you. :-)

[WellManicuredMan]

Re: What's the ideal way to save up for a downpayment on a house?

In the 401k thread by WellManicuredMan, it was mentioned that you can withdraw from your IRA for a downpayment for a house.

Is that the really best way to go about saving up a house? Or, are there better ways?

If I really need to borrow up to $10,000 from my Roth IRA (which I will be creating soon) to help purchase my first house I will. However (as others have said), it is best to avoid doing this. The compounding tax-free earnings from a Roth are phenomenal, so you don't want to withdraw unless absolutely necessary.

Right now my plan is to dump as much money into my Emigrant Direct account as I can after funding my Roth and 401(k) and build up enough for a downpayment on a house plus 3-6 months living expenses.

[Tree0164]

Re: What's the ideal way to save up for a downpayment on a house?

I agree with no using any retirement money to pay for your house.

Save each month towards your house. Work a second job if you want to be aggressive.

And while you are getting a mortgage get a fixed rate mortgage rather than a adjustable rate one.

[jmjj215]

Re: What's the ideal way to save up for a downpayment on a house?

Let's make sure we distinguish between a ROTH and a TRADITIONAL IRA in these discussions - as the latter comes with stiff withdrawal penalties.