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BUSINESS Monday 29 april 2019
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Make a home down payment without wrecking your finances

By BARBARA MARQUAND homeowners ages 21 to
Associated Press 34 borrowed from retire-
Maximizing a home down ment accounts to help
payment can make sense: fund down payments, ac-
The bigger the down pay- cording to the Bank of the
ment, the lower the month- West's 2018 Millennial Study.
ly mortgage bill and the But the decision to do so
better the chance of build- shouldn't be taken lightly.
ing equity more quickly. Borrowing from a 401(k) is
But putting too much down particularly risky. After a job
could leave you without loss, the loan must be re-
enough cash for home paid by the next tax filing
maintenance — or any- deadline or it's taxed as or-
thing else. Pinpointing the dinary income, with a 10%
right amount involves bal- penalty if the withdrawal is
ancing the advantages of taken before age 59½.
boosting the down pay- Using a Roth IRA to boost a
ment against the need to down payment is a better
hold back money for ur- option, says Aaron Clarke,
gent upgrades, life's emer- a certified financial plan-
gencies, and having some ner and wealth adviser at
fun with your new home. Halpern Financial in Ash-
"There's really no one-size- In this Feb. 21, 2019, file photo a recently constructed home, left, is reflected in water, in Natick, burn, Virginia. There are no
fits-all solution," says Jason Mass. taxes or penalties on with-
Speciner, a certified finan- Associated Press drawals of contributions.
cial planner in Fort Collins, First-time home buyers
Colorado. sus 3%, says Rick Bechtel, The insurance, which can bought a home in 2013. who have contributed to a
THE EFFECT OF A HIGHER head of U.S. residential involve upfront and month- "Ten percent was a good Roth for at least five years
DOWN PAYMENT lending at TD Bank. But that ly fees, protects the lender compromise," she says. can withdraw up to $10,000
Calculating how different probably wouldn't make if the borrower defaults. That kept the monthly mort- of earnings on the contribu-
down payments would af- enough difference in the Depending on the type gage under 25% of their tions, tax- and penalty-free.
fect a monthly mortgage monthly mortgage pay- of loan, making a higher income so they could live But Linda Rogers, a certi-
payment is eye-opening. ment to justify doing so if it down payment may elimi- comfortably. Eventually fied financial planner and
Some lenders require only left you strapped, he says. nate some of that expense, they made extra mortgage owner of Planning Within
3% down for conventional "The need for post-closing if not all of it. Kristin Phillips, payments to build enough Reach in Memphis, Tennes-
home loans, which makes cash is always greater, and a Tampa, Florida, psychol- equity to eliminate private see, says she doesn't rec-
getting in the door easier sometimes significantly so, ogist and author of The mortgage insurance. ommend borrowing from
but means assuming more than people expect," he Debt Shrink blog, says she BORROW WITH CARE retirement savings. Many
debt than with higher down says. But a higher down and her husband, Brandon, When deciding on down people are behind on
payments. payment can make a couldn't put down the tra- payment size, consider its saving anyway, she says,
Many borrowers ask if they significant difference if it ditional 20%, but they want- effect on other aspects of and borrowing from an
should scrape together a means lowering or avoid- ed to put down more than your financial plan. IRA means losing tax-free
little more, such as 5% ver- ing mortgage insurance. the minimum when they Twenty-nine percent of growth.q

Deutsche Bank lowers outlook as revenues disappoint

Associated Press from fixed income sales speculation about what "You should also not draw 7.23 euros in Frankfurt
BERLIN (AP) — Deutsche and trading were off 19 other options we have con- any conclusion from this trading.q
Bank said Friday its net in- percent at 1.5 billion eu-
come profit rose 67 per- ros, while those from equity
cent in the first quarter, sales and trading dropped
though revenue dropped 9 18 percent to 468 million
percent as proceeds from euros.
trading declined sharply. CEO Christian Sewing said
The company lowered its that "our continued cost
revenue outlook for the discipline helped us to off-
year. set lower revenues."
Germany's biggest bank However, the bank said
reported details of its Jan- that "we expect revenues
uary-March earnings a day in 2019 to be essentially flat
after it abandoned talks on compared to 2018," com-
a possible merger with Ger- pared with its previous call
man peer Commerzbank. for a slight increase.
It said net profit was 201 Sewing was tightlipped In this March 18, 2019 file photo headquarters of Deutsche Bank,
million euros ($224 million), during a call with analysts left, and Commerzbank are seen in Frankfurt, Germany.
compared with 120 million on what if any new strate- Associated Press
euros a year earlier. gies Deutsche Bank might
Revenues dropped to 6.35 pursue after dropping the
billion euros from 6.98 billion Commerzbank merger sidered, or what options unwillingness to comment."
euros. talks. are or are not under ongo- Deutsche Bank shares
The bank said revenues "We will not be drawn on ing consideration," he said. dropped 4.1 percent to