Profile picture for philpriffe

Borrow for a home or use money from IRA?

My wife and I recently retired. We sold one of our homes and have $400,000 in cash. We plan to sell our condo in New Mexico (worth ~$600,000) and buy a home in Colorado for $450,000-$550,000. Our income for 2014 will be ~$50,000.
We will probably buy the CO place before selling the NM condo.
We have money in an IRA. Would it be better to get a loan or to withdraw from the IRA (considering the taxes)?
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February 28 - US
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Answers (2)

Profile picture for Chelski09
Take a 5/1 arm for approx 3% and no closing costs. Sell your other house and then determine when you want to pay it off. Don't create a headache withdrawing and replenishing the IRA funds unless you have to. A $150k loan would be about a $600 monthly payment.. So your planned income would easily cover that until you sell your other house. Of course do your diligence.
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February 28
Is the home that was sold for 400k your primary residence? Is the home in New Mexico a vacation home or a rental? Have you consulted your CPA or asset manager as to what the tax implications would be?
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February 28
 
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