re: Borrowing from a 401k vs Home Equity Loan

Hi LSU1018, I don't recommend borrowing against a 401k. Many companies have a clause that if you leave the company, position terminated, etc. you would need to pay the money back quickly. Also, if you have a regular 401k (versus the ROTH version) you would be using post-tax money to pay back a loan that is on pre-tax contributions. In an essence you are paying double tax (as you'll pay tax on the 401k distributions when you retire).