Jay H
Senior HTF Member
I will be closing on a house (primary residence) in December and would need about $60k down after all the fees, I'm wondering if you financial gurus out there would recommend that I either
1)Borrow from my 401k, which I can borrow up to $50k on
2)Cash in a $50k CD early (maturity is 8/06). Penalty is 3 months interest.
Now, I know the pros and cons of borrowing from the 401k, i.e. interest you pay on the loan goes into the 401k. If I get laid off or fired, it's treated like a withdrawal, penalties, must be repaid within 60 days, etc. etc.
I don't need much and the only reason I'm considering this is I'd like to keep at least $10k in the bank for my platinum account. I think I'll at most need $10-$15 to meet my closing costs so it's nothing earth shattering.
Assuming I can still contribute to my 401k pretax while I have the loan out, which source do you think I should exercise, cash in my CD early or just borrow a bit from my 401k plan?
jay
1)Borrow from my 401k, which I can borrow up to $50k on
2)Cash in a $50k CD early (maturity is 8/06). Penalty is 3 months interest.
Now, I know the pros and cons of borrowing from the 401k, i.e. interest you pay on the loan goes into the 401k. If I get laid off or fired, it's treated like a withdrawal, penalties, must be repaid within 60 days, etc. etc.
I don't need much and the only reason I'm considering this is I'd like to keep at least $10k in the bank for my platinum account. I think I'll at most need $10-$15 to meet my closing costs so it's nothing earth shattering.
Assuming I can still contribute to my 401k pretax while I have the loan out, which source do you think I should exercise, cash in my CD early or just borrow a bit from my 401k plan?
jay