Downpayment Is Necessary
Jul 24th 2008napDOWNPAYMENT
Where do you go for your downpayment? Retirement funds are one source but only if you are very young, let’s say 20′s to 30′s. From my experience, I personally feel it is a mistake to take retirement funds to make a downpayment. Much better to use an inheritance, save yourself or win a lottery (laugh!). Some borrowers have taken a second mortgage to fund their downpayment. This can really put a lot of stress on your budget. However, if you are serious about owning, you may be willing to struggle for a while. Providing you have a fixed rate mortgage, as your income grows, your monthly mortgage payments become more affordable since they are fixed.
