Borrowing out of 401k for Primary Residence Mortgage

[SVT Lurch]

Strictly financially speaking it's a bad idea for the reasons slow99 mentioned.

As far using it for a down payment, you haven't provided enough information for anyone to give you a good answer (I wouldn't post publicly either, just saying to take the advice with a grain of salt).

For the record I would not recommend buying a condo in D/FW.

[grove rat]

all this house talk made me realize that i dont want a house here in dallas. once i am ready to buy i will buy a small plot of land at least 1-2 hours away from dfw. put a small trailer on it and maintain a small apt in dallas. that way when i wanna get away or if shtf i have something away from everyone. after paying off the in the country spot i'll buy an old small house in dallas and do all the fixing up myself. keep it cheap so if anything happens to it no biggie

[talisman]

Strictly financially speaking it's a bad idea for the reasons slow99 mentioned.

As far using it for a down payment, you haven't provided enough information for anyone to give you a good answer (I wouldn't post publicly either, just saying to take the advice with a grain of salt).

For the record I would not recommend buying a condo in D/FW.

Not giving a lot of info is by design. Why would you recommend against buying a condo? I strongly dislike yard work and unneeded square footage.

[sc281]

Not giving a lot of info is by design. Why would you recommend against buying a condo? I strongly dislike yard work and unneeded square footage.

Same fucking here. I cant wait to rent my house out and move into/build a smaller place.

[Chopped54]

I'm drunk, and not that smart sober, but taking out a loan so you can get approved for another loan????

[Stephen]

Lets just say I'm looking for something as dirt cheap as possible that can be paid off in 5-10 years. As long as it is in an okay neighborhood, I don't need anything ridiculously elaborate. Made that mistake with the oversized house.

you got the jeep? and she got the palace? Wtf? I thought you were the internet guru!

[propellerhead]

Not giving a lot of info is by design. Why would you recommend against buying a condo? I strongly dislike yard work and unneeded square footage.

I'm with you on the yard thing. When I lived in a house in FW, I had TOMMY (his lawn service company) take care of the yard. I paid him in advance for the whole season so all yard maintenance was on auto pilot. I didn't have to do a thing.

[Cooter]

all this house talk made me realize that i dont want a house here in dallas. once i am ready to buy i will buy a small plot of land at least 1-2 hours away from dfw. put a small trailer on it and maintain a small apt in dallas. that way when i wanna get away or if shtf i have something away from everyone. after paying off the in the country spot i'll buy an old small house in dallas and do all the fixing up myself. keep it cheap so if anything happens to it no biggie

says the guy who never wanted to leave Dallas!

I bought the nicest cheap place I could find. Our neighborhood is awesome. Really tight knit. There's only 15 houses in this neighborhood. I could pay the place off with what's in my wallet if I wanted. Not a baller spread by any stretch, but low overhead and low stress beats keeping up with the Joneses any day, and it lets you stack chowder like no other.

[Mike]

says the guy who never wanted to leave Dallas!

I bought the nicest cheap place I could find. Our neighborhood is awesome. Really tight knit. There's only 15 houses in this neighborhood. I could pay the place off with what's in my wallet if I wanted. Not a baller spread by any stretch, but low overhead and low stress beats keeping up with the Joneses any day, and it lets you stack chowder like no other.

You gonna let me hold a dolla?

[talisman]

you got the jeep? and she got the palace? Wtf? I thought you were the internet guru!

Jeep? I hope you aren't aren't confusing me with Levi. I'll have to choke a bitch. My house was sold before the divorce, and was for sale before I was even aware I was about to be divorced.

[Mike]

Jeep? I hope you aren't aren't confusing me with Levi. I'll have to choke a bitch. My house was sold before the divorce, and was for sale before I was even aware I was about to be divorced.

I believe he was referring to this song:

Six short months we went together
Decided it should be forever
Two paychecks are better than one
A diamond ring and it was done
Bought her a house like I said I would
In sub-divided neighborhood
The fuse got short and the nights got long
It was over long gone
Before I knew
Where I was headed to

I'm goin' through the big D
And don't mean Dallas
I can't believe what the judge had to tell us
I got the Jeep she got the palace
I'm goin' through the big D
And don't mean Dallas

Things like this are never final
I'm still payin' on the vinyl
Flooring in the laundry room
It's multi-colored and waterproof
It's a little bit tough to face my friends
The ones that said I jumped in
The river of love a little too soon
That was August
This is June and it's a different tune

I'm goin' through the big D
And don't mean Dallas
I can't believe what the judge had to tell us
I got the Jeep she got the palace
I'm goin' through the big D
And don't mean Dallas

I'm goin' through the big D
And don't mean Dallas
I can't believe what the judge had to tell us
I got the Jeep she got the two bedroom
Mortgage is due
Siding light blue palace
I'm goin' through the big D
And don't mean Dallas
I'm goin' through the big D
And don't mean Dallas

[Rreemo]

I'd talk to a real financial advisor on this one....I've always heard unless it's being used for something like debt. consolidation, where you are replacing a high sum of combined interest rates (say like paying off 4 credit cards that each have a $5K balance and each ~10% interest), it's not normally the best option.

But then, if its a low amount that you will be paying back in a year or 2...may not be a bad option either. I can tell you that carrying my own escrow turned out to be a very good thing for me.

[grove rat]

says the guy who never wanted to leave Dallas!

oh i hope i never have to.. but i'm a realist and know that one day shit could hit the fan and i dont wanna be out in east texas in a fucking tent

[FreightTrain]

I'd talk to a real financial advisor on this one....I've always heard unless it's being used for something like debt. consolidation, where you are replacing a high sum of combined interest rates (say like paying off 4 credit cards that each have a $5K balance and each ~10% interest), it's not normally the best option.

But then, if its a low amount that you will be paying back in a year or 2...may not be a bad option either. I can tell you that carrying my own escrow turned out to be a very good thing for me.

Yea I'm in the middle of a refi right now and I'll never escrow again. Can't wait till it's finished and I don't have to deal with those idiots anymore. I've been in this house for 6 years and not once have they gotten it right. Every year I'm either writting them a check for 1k to 2k or they are sending me a check for 1k to 2k.

[SVT Lurch]

Not giving a lot of info is by design. Why would you recommend against buying a condo? I strongly dislike yard work and unneeded square footage.

I figured, just reiterating. Dallas just doesn't seem to be a condo market. I've only seen one condo appreciate at all (it was in Uptown), while the rest have lost value (most significant amounts up to and including half). Even when it's paid off you're still paying an expensive HOA fee along with taxes and insurance so the low overhead doesn't necessarily apply. You can buy a house and pay someone $20/week to mow it ($80-100/month on yardwork is cheaper than any HOA I've seen on a condo). People get excited when they see a nice condo for $60,000, but when you add the $400/month HOA payment you end up with the same payment as a $150,000 house. The big difference being when the house is paid off that extra $400 goes away. The HOA will never go away and will likely increase.

Ultimately it's where you live and your happiness outweighs a few hundred here or there (be it HOA or yardwork), but you mentioned doing this to save money and I just cannot see a condo being that vehicle.