Or - Should I borrow from my IRA to purchase a residence?
I have $44,000 in my IRA and I'm about to purchase my first residence (a condominium). Can I borrow from my IRA, pay interest to my IRA and deduct that interest?
I'm already putting about 30% down on a $280k purchase. I can get a mortgage at 5.5%. If I borrow from my IRA, I can pay 7.5% interest to myself. Is this deductible? Should I take out a larger mortgage or borrow from my IRA? If I were not paying to myself, it seems like a poor choice.