No. of Recommendations: 2
My first post, so here goes...I have an outstanding 401k loan (4 yrs left to go). I am contemplating getting one of those 125% LTV 2nd mortgage loans and wrapping some credit card debt and the 401k loan into it.

I am paying (myself) 9.75% on the 401k loan. The 2nd mortgage interest rate will be 12.5% fixed for up to 30 years (my choice).

Does this make sense? By putting the 401k loan money back into my plan, I could potentially earn more than the 12.5% I would be paying on it and my takehome pay will increase now that the loan would be paid.

Taking out the 125% LTV loan will save me close to $400 per month and leave me cash in the bank...excluding whatever tax benefits there will be.

Thanks...jimmi mack
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