ProGolferWannabe
Recycles dryer sheets
- Joined
- Jan 14, 2012
- Messages
- 141
My wife and I are moving from a low cost of living area to a high cost of living area. We own our home free and clear, have a contract on it, and assuming we make it to closing without some sort of disaster, we will walk away with about $265K. The new house that we will be purchasing is far more expensive (frankly I am embarrassed and almost ashamed to say how much more; suffice it say a lot). We will be getting a 30-year mortgage with a rate of 3.75%.
I found out today that I can borrow up to $100K from my 401K at a rate of 1.25% fixed for 15 years. I am wondering if it would make sense to reduce the amount of money I borrow from the bank and replace it with a 401(k) loan; I feel VERY certain that I will not be terminated, laid-off, etc from my new job, so repaying the loan in event of job loss is not an issue. We can afford to make the payments regardless of how we finance---all with the bank, or with the bank/401(k) combined.
Thanks in advance.
I found out today that I can borrow up to $100K from my 401K at a rate of 1.25% fixed for 15 years. I am wondering if it would make sense to reduce the amount of money I borrow from the bank and replace it with a 401(k) loan; I feel VERY certain that I will not be terminated, laid-off, etc from my new job, so repaying the loan in event of job loss is not an issue. We can afford to make the payments regardless of how we finance---all with the bank, or with the bank/401(k) combined.
Thanks in advance.