Borrowing out of 401k for Primary Residence Mortgage

[talisman]

When unexpected financial situation comes up, and then you suddenly need cash, one option may be to consider is to take a loan from your 401(k). Many Americans are doing it, but most of them default on loans they have taken out from their 401(k) plans. A lot of them are not able to pay back the loans, as the number of 401(k) loan defaults have been increasing. Get more information here: 401(k) loan defaults.

Well where were you 18 months ago you helpful little devil?

[talisman]

The biggest problem I've got is that the type of property I want doesn't really exist. Less than 1500 square feet, 2 car garage, 2 bedrooms, tiny yard, dirt cheap, and not in a shit neighborhood. It's the not in a shit neighborhood and the square footage that are giving me problems. Most people want bigger houses. I would be perfectly fine with something in the 1200 or less square foot range, but I don't want to have to sleep with an arsenal next to my bed.

Sidenote, since I went ahead and reread this thread. I ended up getting everything I wanted in this post, aside from the tiny yard, and 2 bedrooms. I ended up getting 3 bedrooms, and a rather large yard for inside DFW, almost a quarter acre. The yard was the biggest thing I was worried about getting in over my head about, but by hiring a lawn guy, I inadvertently increased my quality of life two fold. I'm in the back yard in a lounge chair for a couple of hours reading almost every single day when the weather is nice enough, and now I actually wish I had more space back there. I had no idea how much I would enjoy the yard once I wasn't the one taking care of it. I did borrow from my 401k, but a significantly smaller amount than I was considering when I started this thread.

I fucking LOVE this little house. It has ended up being the best purchase I've made in life aside from Lasik. 13.5 years until it's paid off.

[01vnms4v]

Congrats on the new house purchase now show it off at least one pic. Screw the ballers on here lol

[talisman]

Congrats on the new house purchase now show it off at least one pic. Screw the ballers on here lol

Not really new any more. Been in it since Halloween of 2012.

1966 Ranch.

[Roscoe]

Not really new any more. Been in it since Halloween of 2012.

1966 Ranch.

I love your wood.... (trees, that is).... Nice lot/house!

[mstng86]

I remember buying my house a month after you. I also borrowed from my 401k, but can still contribute.

I've learned a few things this first year. Taxes piss me off. Fences need metal poles. Kids and white carpet do not mix. I can't wait to get some hardwood floors.

And I know you have been worried about what's on my fridge talisman. It all got cleared up after the holidays.

[talisman]

Thanks Roscoe!

I remember buying my house a month after you. I also borrowed from my 401k, but can still contribute.

I've learned a few things this first year. Taxes piss me off. Fences need metal poles. Kids and white carpet do not mix. I can't wait to get some hardwood floors.

And I know you have been worried about what's on my fridge talisman. It all got cleared up after the holidays.

hahaha

I just finished the floors a couple of months ago, hardwoods throughout now. I can't stand carpet. Taxes piss me off as well, especially since I don't have a kid making use of the school system. Luckily mine are pretty low, all things considered. Almost half what I was paying on the last house in fact, and this house was slightly more expensive. I paid a lot more attention to it in the buying process this time. Having 2 purchases behind me really helped zero in on shit to avoid and what not to compromise on this time. I do wish the place had a pool, but I'll probably add one in the future.

[SVT Lurch]

Fences need metal poles.

Fence Mender

I love your wood.... (trees, that is).... Nice lot/house!

Thanks Roscoe!

Make sure you keep the trees trimmed and plan ahead to get it done. I had a guy scheduled, but they were 2-3 weeks out. The ice storm came through during that wait and I lost a big branch. Fortunately it was over the backyard and not the house.

[talisman]

Exact same thing happened to me, Trey. Luckily my lawn guy lives across the street and over one, so I just walked over and told him, had him take care of the others while he was at it. It was a big mofo too. I couldn't even reach it at the top of my ladder with my pole saw completely extended. That tree on the left is huge. I can't even get my arms around it.

[jyro]

bbq party?

I took 401 money to pay off my home before I started SS. less than 59 there is a 10% penalty plus around 20% irs so you're taking 30% right off the top. right after I did it, the market dropped terribly so i felt fortunate to have removed the money and used it instead of it dissolving when the market took a dump. "They" keep talking about a big market drop in the future, if you happened to take the money out and then the market drops, it's a good thing because whatever you took out didn't drop. On the 401 loan, you're paying yourself the interest and a small loan charge goes to the 401 holder. That's how it was in my case anyway with Fidelity. Make sure your job is secure, if you loose your job while you owe the loan to the 401 they will take it out of the remaining funds with another 10% loss and I don't know if IRS applies to that amount.

[talisman]

bbq party?

Nah, my dogs birthday was on the 1st.

[Mike]

Nah, my dogs birthday was on the 1st.

$$$$Choooo Chooooooo$$$$$$$$$$

[2011GT]

Nice house! And don't listen to my advice I gave on this first page. I'm a Dave Ramsey disciple now haha.

[SVT Lurch]

Nice house! And don't listen to my advice I gave on this first page. I'm a Dave Ramsey disciple now haha.

LOL!

I stand by all my previous advice in this thread.

[slow99]

Nice house! And don't listen to my advice I gave on this first page. I'm a Dave Ramsey disciple now haha.

Aren't we all, man, aren't we all.

Eric, live like no one else, so that you can live like no one else.