home permit loans
Question: Someone suggested that I get a Home Equity loan of some sort but I don’t > know a lot about that kind of thing.
can you not borrow from your 401(k) for this sort of thing? i know many 401(k)’s permit withdrawals/loans for this sort of circumstance, and this seems that it might be better than a home equity loan …
Answer: Not all 401ks permit loans. Even when they do, though, it’s usually a pretty bad idea. Not only are you diminishing the capital you have at work for your retirement, the interest you pay yourself is not deductible, _and_ if you leave the job, you have to pay the entire remining balance due immediately, else it is considered an early withdrawal, subject to income taxes and penalties.
If you are talking about home-repair, a home-equity loan may be much more reasonable. The interest may be deductible, the collateral is the home which is being repaired anyway, etc.
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