Sunday, March 8, 2015

Borrowing from 401k to avoid PMI. Bad idea? personalfinance


Annual combined income: $125,000. Home price: $225,000. Down payment we are prepared to make: $12,000.


We have $0 in credit card debt and $10,000 left in student loans.


It is a new home. We have an additional $15,000 savings on top of what we are willing to put down. That is not including the $7000 we anticipate on spending on a few pieces of furniture and refrigerator (rest of appliances are included/we already have). Closing costs are being paid for by seller as we are using their in-house finance company.


Should we take a loan against our 401k to reach the 20% down payment to avoid PMI?


Thanks for the advice.


EDIT: Additional details added.







Submitted March 08, 2015 at 09:05PM by theWet_Bandits http://ift.tt/1Fv1Eg9 personalfinance

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