2007-10-01 04:55:41 · 6 answers · asked by Christian G 1 in Business & Finance ➔ Personal Finance
not necessarily bad but something to consider would be to refinance as soon as possible because...
If you leave your company then the loan becomes entirely due and payable. If you fail to do so then it becomes taxable and you may incur a 10% extra tax on the balance.
So, borrow as little as you need to and pay it off as quickly as you can...you don't want to be locked into your job because you've essentially let the company hold your mortgage!
2007-10-01 06:06:29 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
This may sound harsh but I don't mean it to be.
If you have to borrow from your 401k to purchase the house then you really can't afford the home. Save your money and be patient. A house you live in is not a good investment. The only real reason to buy a home is if you want a place that is yours. Once you add up taxes, interest on the mortgage, upkeep etc. your return will be minimal if anything. So I would urge you to keep your 401k where it is and wait. I have yet to meet a person that had too much money for retirment but have met many who have too much house.
2007-10-01 06:19:01 · answer #2 · answered by hopetohelp 2 · 1⤊ 0⤋
caveats, in case you think of you will run your playing cards decrease back up, actually no longer. if your plan helps the non-public loan and a particular timeframe to pay it decrease back, determine you will stay the full time. in case you go away your company your loans could come due and you would be charged for a distribution, interestingly like an early one at that, so word which you are going to have effects and interest if that occurs, word which you will decrease your growth on your contemporary plan besides. confirm to no longer enhance the time too a great way and as a result pay greater interest, shop the money on your 401k on the comparable volume you're paying on your playing cards, case in point if the plan helps 50 and you'll be able to have adequate money a hundred pay the better volume , this form you will end even quicker.
2016-11-06 22:53:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
mortgage companies might not approve a mortgage for you if you do that - you're just incurring more debt - you may, however be able to withdraw money from your plan for a hardship case of which purchasing a home is allowed - BUT - you'll be taxed on the distribution and owe 10% penalty (if you're under 59-1/2) come tax return time if - contact your 401k administrator for details
2007-10-01 06:24:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
that is about the only reason to ever borrow from your retirement account. hope you can pay it back
2007-10-01 05:34:50 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Not a problem as long as you will be able to pay it back.
2007-10-01 05:19:56 · answer #6 · answered by Judy 7 · 0⤊ 0⤋