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01-30-2009, 10:14 AM
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#1 |
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Registered User
Join Date: Apr 2006
Location: Middletown, NY
Posts: 49
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Contribute to Roth vs House down payment
Here's the details...
25 years old making 50k/year 35k in savings account another 10k in Roth IRA Live in South Florida. Looking to buy property in the somewhat near future (within the next year). South Florida real estate market is one of the worst in the country and it will be a great time to buy. With mortgages being tough to come by, I am wondering if I should keep the 5k I could contribute to my Roth IRA and use that for my downpayment. I have very good credit (775) and have been pre-approved for 180k loan right now (but that doesn't buy much down here). Let me know your thoughts... |
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01-30-2009, 10:29 AM
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#2 |
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No Disclaimer Necessary
Join Date: Feb 2005
Posts: 1,772
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If you could only choose one, I'd choose the Roth in your situation every time.
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"A nickel ain't worth a dime anymore." - Yogi Berra |
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02-01-2009, 09:56 AM
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#3 |
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Registered User
Join Date: Jan 2009
Posts: 9
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I agree, I'd go with the Roth
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02-05-2009, 10:52 AM
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#4 |
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Registered User
Join Date: Dec 2003
Posts: 20
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Now looking back, I think one of my best decisons was to put more money down on my house and pay extra each month on my house note. I figured i would reduce my interest atleast by about $110000 over the life of the loan.
I do have Roth IRA's and Traditional IRA which i fund to the max and also a 401K that i contribute to the max contribution limit but haven't made a single dime for the 13 years of investements except in one of my funds DODIX which i am up a whopping $500.00 Goodluck |
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02-13-2009, 08:58 AM
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#5 |
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Registered User
Join Date: Apr 2006
Location: Middletown, NY
Posts: 49
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Can I have your thoughts on why to go with the Roth IRA over the downpayment for the house? or Vice Versa?
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02-17-2009, 09:24 AM
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#6 |
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Registered User
Join Date: Dec 2003
Posts: 20
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Andy,
If i were you, I would use a mortgage calculator or tool to see what my interest savings would be depending on my down payment. It almost seems like in your case 5K may not make a whole lot of difference as a down payment on a 180K loan. Besides, in this economy it is always nice to keep cash reserves for about 6 months in the event of job loss. However i would definitely encourange you to make full extra payment each year on your mortgage. Good luck |
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