A recent survey by Bank of the West found that one third of recent millennial homebuyers withdrew from, or borrowed against, their retirement accounts to get into their first home.
Withdrawing from a retirement account can incur big monetary penalties. And loans against your retirement account usually require you stay on that job, so early repayment could be triggered if you change employment or are fired.
Is that really necessary, especially for housing prices in Kern County? Maybe not.
We are fortunate to live in an area that offers loan programs that may require no down payment at all. And if those loans don’t work for you, you’ll at least have engaged a professional so you can make a plan. Be pro-active and be in touch with your local mortgage advisor before you jump to the conclusion that raiding your retirement is your only option in today’s home market.
Tammy Engel is your local Mortgage Advisor. She’s been working for your best interest since 1990, and can be reached at 661/822-7325 for your next purchase, refinance, and reverse mortgage. NMLS #235051 CaDRE#01273839