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Go with the Roth

Comment comment by biffjo on 15 November 2007

I just went through this...

IF putting the extra $8K down helps you avoid PMI, put it towards the mortgage down payment, otherwise, the smart move is to max out the Roth. Why put the $8K into a black hole (i.e. some bank) when it can be earning you money.

Additionally, an extra $8K for a down payment only saves you what, ~$60 per month in mortgage payment. This is all psychological. You will earn much more, big picture, by maxing out the Roth. Don't forget, mortgage interest is a tax write off as well.

Good luck

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You've got 4+ months to figure it out by NickM69800 :: NR2

You can contribute into your ROTH IRA up until the tax deadline of 15 April 2008 for your 2007 contributions. Ypu just need to do it over the phone usually with the banking agency. This may give you the cushion to be able to do both if you can put away about 2k a month.

Max your Roth IRA unless this is equivocally you're Dream Home and you'll never move you'll likely sell and realize very little of the minimum payment difference.

Posted 25 November 2007, Hide, Parent, Reply