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<I think it depends on how your employer handles the loan from the 403(b). The University of California charges something like 7.5% interest on a 403(b) loan, but only 0.5% of that interest goes to the University. The rest gets plowed back into the 403(b). So with the exception of a paltry 0.5% interest, all the interest you pay, you are paying to yourself>


You still can't deduct the interest you pay yourself as mortgage interest, so you lose that tax break. And why borrow at 7.5% when the average loan rate is <6.75%? How happy would you be getting a 7% return on your retirement investment. Keep the retirment money for retirement investing.

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