There is a first time home buyer exclusion that would spare us from the 10% penalty of yanking the retirement funds
Are you sure about this? I know that Roth IRAs allow you to pull out money for use in purchasing your first home, as long as you’ve had the account for 5 years or more, but I’ve not heard of a similar exclusion for 401k accounts. If you are sure, would you happen to have links to more information about this? Thanks!
P.S. I would say go for it (if you’re sure about no tax penalties) Most people don’t even begin to save for retirement until they are in their 30s anyway. And not having a mortgage payment will allow you to dedicate more of your salary toward retirement.