<prompt> Human: Renting now but I want to purchase. I need a down payment and I am thinking cashing out on old 401k to fast track it. Does this ever make sense or am I being impatient?  <response>: No, that makes no sense. Why would you pay a 10 penalty income tax probably 15-25 on money that could earn you thousands in compound interest over the next few decades? If youre stretching that hard for your down payment, chances are you arent financially ready to own a house anyway. Dont put yourself further behind on retirement into the bargain. 