2006-12-08 03:32:21 · 5 answers · asked by Anthony M 1 in Business & Finance ➔ Personal Finance
you should really look into Dave Ramsey, he will open your eyes to controlling your debt.
2006-12-08 03:36:13 · answer #1 · answered by megan b 2 · 0⤊ 0⤋
I would not suggest taking money out of what is supposed to be your Retirement account. What you should do is look into possibly Re-Financing both your first and your second mortgage into one loan. Rates have begun dropping over the last 2 wks, at this point a 30 Yr Fix is under 6%.
If you do not wish to consider this, try doing the following: Take your minimum payment for your HELOC and add some additional money to it every month. This will help you pay it off faster. If your in a HELOC that is based solely on Interest Only Payments, you have not paid a dime off in principal. You need to start adding money to the Principal.
Here is another idea that I have suggested to some of my clients. When you get your tax return, take the return and send the check to your HELOC or 1st mortgage. This will knock a nice amount of your principal off the payment. Do this for a couple years and you will have no debt at all.
Paying back a 401K plan can take up to 10 yrs and hurt more than help!
2006-12-08 11:50:36 · answer #2 · answered by babedoll_nj 2 · 0⤊ 0⤋
Well that depends on if you have a first mortgage or not. If you do and the value of your home is enouph, then I would roll if off and combine the HELOC and the first mortgage into one. Refinancing can be the smart thing to do here.
Taking money from your 401K is not a good idea becose that is retirment money and you still have to pay the account back, in a shorter time span. Save your retirment money for that and refi it with the first mortgage!
2006-12-08 11:40:03 · answer #3 · answered by 4thmonkey 1 · 0⤊ 0⤋
You can get a tax break on the intrerest from a home equity loan. A 401k loan will be taxed if you lose your job. If you lose your job you will have to pay 20-25% tax to the government as it is considered income at that point.
2006-12-08 12:14:57 · answer #4 · answered by Your #1 fan 6 · 0⤊ 0⤋
I would look into REFI with your 1st and HELOC. Based upon a 720 Credit score, Full DOC ect you can have a rate in the high 5's or low 6.
Don't cash out 401K that is never a beneficial option.
2006-12-08 12:25:13 · answer #5 · answered by Jen G 3 · 1⤊ 0⤋