spinoff to buying a house!

for girls who have 401Ks...

you can borrow from YOURSELF and pay YOURSELF back with pre-tax$$$ as opposed to taking a loan and paying a bank your hard earned cash in interest!

you can borrow from your 401K for either education (i borrowed for my graduate degree and i had an amazing experience) OR....to purchase a house!

some keys:

1) only 1 401K loan at a time (this may be specific to my plan)
2) you pay youself interest (my rate was 9.25%)...this is AWESOME because you're actually generating money while you pay yourself back
3) you pay from each pay check directly so you never see any of the money and therefore don't miss it

some / all of the details may be specific to my plan but I would totally look into this! i am *SUCH* an advocate!

I have access to enough cash for the better part of a downpayment. It makes the downpayment so much more realistic as opposed to just saving cash. plus maybe we'll be able to furnish the house...at least a room or two...AND still be able to eat!

Re: spinoff to buying a house!

DH can do this... he has and has a loan out now, he took some out to pay his truck off.... it kinda works out bc he pays himself back the intrest, so its like hes kinda making money too.

Re: spinoff to buying a house!

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Posted by bluj786

DH can do this... he has and has a loan out now, he took some out to pay his truck off.... it kinda works out bc he pays himself back the intrest, so its like hes kinda making money too.

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yup yup - exactly!

i recently paid myself back and got ride of my loan for graduate school. i was *shocked* in the best possible way to see how much my 401K had grown and i think a big part of it was the interest i was paying myself back.