I'm in the process of buying a vacation home.
I was vacationing in the area that I purchased this town home, and I was trying to expedite the closing date. I didn't want to travel home, and then come back.
With interest rates low, I decided to take out a mortgage loan, and I didn't want to clear out all of my roth and cash accounts.
I was trying to expedite the loan approval process. I have access to advice from a financial advisor, because I keep about 25% of my retirement funds with him. He holds all of my wife's accounts, and my roth accounts.
He recommended that I borrow from my IRA account, pay cash at the closing, and then get a new loan set up to repay my IRA account within 60 days without a penalty.
I didn't know I could do this, and it seems to be working out very well. I'm assuming the loan I'm applying for is approved within 60 days.
I just thought I would let others know about this IRA rule. Maybe it is common knowledge, but I've never heard of it.
Take care,
JP
I was vacationing in the area that I purchased this town home, and I was trying to expedite the closing date. I didn't want to travel home, and then come back.
With interest rates low, I decided to take out a mortgage loan, and I didn't want to clear out all of my roth and cash accounts.
I was trying to expedite the loan approval process. I have access to advice from a financial advisor, because I keep about 25% of my retirement funds with him. He holds all of my wife's accounts, and my roth accounts.
He recommended that I borrow from my IRA account, pay cash at the closing, and then get a new loan set up to repay my IRA account within 60 days without a penalty.
I didn't know I could do this, and it seems to be working out very well. I'm assuming the loan I'm applying for is approved within 60 days.
I just thought I would let others know about this IRA rule. Maybe it is common knowledge, but I've never heard of it.
Take care,
JP