The Motley Fool Discussion Boards
Personal Finances / Buying or Selling a Home
|Subject: Re: Downpayment Sources||Date: 5/10/2013 8:45 PM|
|Author: Rayvt||Number: 125249 of 128075|
First, IIRC, when used to purchase a home, you can have 30 years to put it back in.
I only have direct knowledge of Motorola's 401K plan. AFAIK, it's pretty typical. For a home purchase, you have 10 years. Not 30.
When I left in 2006, you had 60 days after quitting (or getting laid off) to pay off your 401k loan(s). I just checked -- and now, WOO-HOO! you can keep the loan(s) as long as you continue to make the monthly payments by direct debit.
"Interest" is defined under the Finance Code as "compensation for the use, forbearance, or detention of money" .... please explain again how it does not apply in the context of a 401-k loan.
Sure. Easy. You don't pay interest to yourself. You don't pay compensation to yourself. It's a logical impossibility. The entity (you) that is receiving the "interest" is the same entity as is paying the "interest".
Just like you don't "pay" yourself for mowing your own lawn.