re: Using your 401k to buy a house

You are better off after 59.5 because you aren't getting an immediate 10% haircut. That said, paying off the mortgage or getting a new one will depend on how much interest you are paying versus what you can get investing the money.

Keep in mind that the bulk of the interest on a mortage is paid at the beginning. When you are toward the end of the mortgage, very little interest savings are realized by paying it off. It is a good feeling though to write a check and be done with it.

When using a mortgage to buy a home, you are still paying rent. Only you are renting money. And the rent is tax deductable.