Using 401K loan on down payment for house

[Pete Wrigley]

Had a couple of friends take out a 401K loan with no penalties involved (as it can be used for the purpose of buying a home).

Just talk to a realtor and/or accountant if you decide to go this route.

 

[Bboystyle]

Lol yal ain't figure out a way to NOT have to pay a mortgage yet? ..


I refuse to drop gems in here until they lock this section of the coli up but cmon.


Think brehs.. think..


How can we use what's ours to claim what's ours for free ? .. there's a way brehs

N paying a mortgage .. excuse me .. lemme rephrase that.


PAYING a mortgage with our money we WORKED for...

And PAYING a mortgage with
"money" we "earned" are 2 different things

Now let's see which 6 certs actually know what I'm talkin about or are Certy enough to research..

I'm in the books heavy these days fore this knowledge .. it's golden guys n it's ours

Talk subtle about welfare brehs

 

[Marco Andretti]

Talk subtle about welfare brehs

Til they lock it up that's all u get .

 

[dblive]

Some 401k plans have loan terms for mortgage payments that stretch out over the course of the home loan 15, 20, 30 years. In those cases why not? You should have enough disposable income in these cases to not only pay back the loan, but increase your monthly contribution to your 401k to make up for the potential loss of interest income on the previously higher 401k value

 

[Pimp]

The dumb shyt said in this thread...

 

[Truefan31]

Some 401k plans have loan terms for mortgage payments that stretch out over the course of the home loan 15, 20, 30 years. In those cases why not? You should have enough disposable income in these cases to not only pay back the loan, but increase your monthly contribution to your 401k to make up for the potential loss of interest income on the previously higher 401k value

If you have that much disposable income then just save up the down payment on the house breh. If you're living relatively debt-free than it won't take long unless you're trying to buy a house you can't really afford. You're losing a lot of money doing 401k loans breh.

 

[Warren Moon]

Why Would Anyone Borrow From Their 401k.. Most stupid shyt you could do.

The dumb shyt said in this thread...

401k loans or extracting money isnt always a bad thing

 

[dblive]

If you have that much disposable income then just save up the down payment on the house breh. If you're living relatively debt-free than it won't take long unless you're trying to buy a house you can't really afford. You're losing a lot of money doing 401k loans breh.

I guess it depends on the area you live and the cost to busy. I can see your perspective on houses in the 100-200's. Higher cost mean higher deposits. In these cases a person may not want to wait 3 to 5 years to save the deposit. Just giving an option if you have a healthy retirement plan

 

[Pimp]

401k loans or extracting money isnt always a bad thing

It's a bad thing, but then again, most people have no idea what to do with money.. It blows my mind how fukking stupid people are with money..

 

[Pimp]

I guess I'm it depends on the area you live and the cost to busy. I can see your perspective on houses in the 100-200's. Higher cost mean higher deposits. In these cases a person may not want to wait 3 to 5 years to save the deposit. Just giving an option if you have a healthy retirement plan

You can either wait 3-5 years to buy or work 6 more years to retire because your stupid ass took money out early..

 

[Warren Moon]

It's a bad thing, but then again, most people have no idea what to do with money.. It blows my mind how fukking stupid people are with money..

During a downturn which is what's coming its smart paying off something with a higher interest rate than your 401k is accumulating.

I doubt that's the case for most people but taking it out isn't always bad

 

[Pimp]

During a downturn which is what's coming its smart paying off something with a higher interest rate than your 401k is accumulating.

I doubt that's the case for most people but taking it out isn't always bad

nikka they been saying a downturn coming the last couple of years and they been eating their words.. Even during a downturn you are still gonna lose because a downturn aint gonna last 4-5 years. This shyt is common sense.. A downturn is like black friday... You should be buying all you can..

 

[Warren Moon]

nikka they been saying a downturn coming the last couple of years and they been eating their words.. Even during a downturn you are still gonna lose because a downturn aint gonna last 4-5 years. This shyt is common sense.. A downturn is like black friday... You should be buying all you can..

That would be true if you managed your own 401k most don't.

Either way I'm speaking hypothetically during a downturn (or preferably right before); If you can pull it in a way, in which it's tax free to take of so. It makes since to do it. You can't argue with that

 

[dblive]

You can either wait 3-5 years to buy or work 6 more years to retire because your stupid ass took money out early..[/QUOTE

Relax, my retirement funds are well funded and significantly higher than average. I borrowed against my 401k 4 yrs ago and only have one year to pay back the loan at 4%. I increased my monthly 401k deposit by 2% to make up for the potential lost interest from the previously higher 401k value. The house I bought has appreciate in value over 5 times the cost of the loan in the same period. I didn't lose dummy

 

[Truefan31]

It's your money breh but overall 401k loans are a bad idea unless you facing crazy emergencies (hence an emergency fund). Getting income taxed on it, paying it back with taxed dollars, lost compounding interest, possible penalties on top of that, it's just not a good idea. And prolly the worst thing is people tend to keep borrowing hence a bad habit.