No. of Recommendations: 0
I agree that taking a loan against a 401k is a terrible idea...... unless it's the substitute for a mortgage. Aren't I paying that loan back at a much lower rate (and paying back to myself) than a 30-year fixed APR?

To me it seems smarter to loan against the 401k money and put that money into my house, then pay the loan back over time... instead of giving that much more interest $ to the bank


not 'terrible' (IMO), but very risky.

don't know that the 401k rate would be lower than mortgage ( for me, it was lower than auto-loan rate .. i WAS wild-&-crazy <g> ),

but could be ..and you are paying yourself ..and the higher down could get you out of PMI
Could be smart ,depending on all the numbers.


the danger, as everyone notes is in losing your job -- you need a back up plan just in case.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement