U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-30-2011, 09:51 AM
 
1 posts, read 3,249 times
Reputation: 10

Advertisements

I am 62, have a balance of 14000 left on mortgage. I was thinking of borowing that amount from my 401k for reasons I won't bore you with. any advice?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 03-30-2011, 10:35 AM
 
Location: Laguna Niguel, CA
768 posts, read 4,140,805 times
Reputation: 456
What's the interest rate on your 401k loan and what is the interest rate on your mortgage?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-30-2011, 11:55 AM
 
4,246 posts, read 11,066,422 times
Reputation: 3135
Don't do it!!!!!!!!!!!!!!!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-02-2011, 06:07 PM
 
Location: My little patch of Earth
6,193 posts, read 4,881,949 times
Reputation: 3048
Quote:
Originally Posted by danieloneil01 View Post
Don't do it!!!!!!!!!!!!!!!
I realize there are tax pitfalls regarding 401k loans should a job be lost and the loss of 401k interest earnings, but even so I considered this about 10 years ago, but didn't follow through with it. We paid our mortgage off the conventional way (extra principal payments regularly).

Why do you say don't do it?

Just curious....
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-03-2011, 12:57 PM
 
Location: Albuquerque
5,548 posts, read 14,809,776 times
Reputation: 2731
Quote:
Originally Posted by wrench409
Why do you say don't do it?
The better question is :
"Why would you want to do it?"

Your mortgage loan interest is tax deductable. It's not much of a deduction, but it's not nothing.

Your 401k loan doesn't benefit you in any way.

Your debt to the outside goes down and your net assets go down by the same amount.
What could possibly be the benefit of taking a 401k loan for that?

If you were talking about a 21% ( or worse ) credit card debt, we would be having a different conversation.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-03-2011, 05:43 PM
 
4,246 posts, read 11,066,422 times
Reputation: 3135
Because your 401k is for retirement not to take a loan against to pay on other loans. Don't take on stupid debt, plain and simple. But in your case just put more towards the principle.

Can we get the ability to remove loans on 401k's by a bill, seriously? I would vote for any person running for President that would be on board with this, unless their name ended with Obama.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-03-2011, 06:42 PM
 
Location: Albuquerque
5,548 posts, read 14,809,776 times
Reputation: 2731
Quote:
Originally Posted by danieloneil01
Can we get the ability to remove
loans on 401k's by a bill, seriously?
There is nothing wrong with a 401k loan in the right circumstances.

Suppose someone marries another with large credit card debt of $10,000
or something like that and they don't have a lot of money to spare for
one reason or another. Most credit card debt is in excess of 20% and
some even over 30%. Using 401k money for that as long as the person
is continuing to have the maximum withheld every year is just fine.

What would be better on a bill would be mandatory 401k participation if
available from the employer and if not then mandatory IRA contributions.
As long as you are "dreaming" about tax bills that you wish for ...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-05-2011, 06:42 AM
 
Location: Englewood, FL
1,268 posts, read 2,684,555 times
Reputation: 1109
I agree; DON'T DO IT.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-05-2011, 06:50 AM
 
16,434 posts, read 20,203,095 times
Reputation: 9566
Are you sure you can even take that big a loan? My 401k only allows a max loan of 50k no matter how much the total is in the 401k.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-08-2011, 11:20 PM
 
Location: Los Angeles, but looking for my niche in ME, or OR
326 posts, read 391,269 times
Reputation: 297
Quote:
Originally Posted by Bideshi View Post
Are you sure you can even take that big a loan? My 401k only allows a max loan of 50k no matter how much the total is in the 401k.

I believe he said $14,000 not $140,000
But anyways, I was thinking about something similar, but in my case I would do it upon retirement, and take out (not a loan) a 80,000 to buy myself a little house somewhere...
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top