- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Is borrowing against your 401(k) for a home down payment a good idea?
Posted on 12/15/13 at 9:46 am to saintforlife1
Posted on 12/15/13 at 9:46 am to saintforlife1
Consider the gap this would create in your 401k. You will pay yourself interest, but it will probably be around half of what your 401k returns. That gap could exceed the cost of PMI or whatever other means you have to borrow the $30k.
Posted on 12/15/13 at 1:30 pm to lsu711
quote:
Consider the gap this would create in your 401k. You will pay yourself interest, but it will probably be around half of what your 401k returns. That gap could exceed the cost of PMI or whatever other means you have to borrow the $30k.
Not all 401k plans are set up this way. In my plan, you just borrow the money with the funds in the plan as collateral. The money you borrow still sees the same growth as it would if you didn't borrow against it. If his 401k is setup this way, I don't see any issue with it.
Popular
Back to top
Follow TigerDroppings for LSU Football News