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No. of Recommendations: 5
For one thing, check the terms on your 401(k). You may be limited to a loan of $50,000 or less (or half your balance). You may be forced to pay the loan back quickly and in full if you terminate from the company or otherwise have it viewed as a premature distribution. You may be limited to a shorter term on the loan than you can handle the payments on. You may be restricted on making further contributions above and beyond the loan repayment to your 401(k) while your loan is outstanding.

In short -- it's a huge potential minefield that can quickly turn what may have seemed like a good idea at the time under a certain set of assumptions and circumstances into an outright nightmare in practice.

Inside Value Home Fool
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