Using a 401(k) for Buying a House
I was recently talking to an acquaintance that had been wanting to buy a house... something became available for them in their market, but they didn't have the down payment of 20% they wanted to put down to avoid MI and get their payment at 6.75% to work...
They decided to use their 401(k) at her place of work since she had the larger balance. They borrowed $30,000 at about 7% and will pay it back over 5 years to make the deal work.
They have a growing family and didn't want to miss an opportunity to buy now.
If you haven't considered this before, as a 'hack' for new home buyers, here are a few key aspects to consider. Here is the presentation: https://tome.app/unc-b67/unlock-the-power-of-your-401k-to-buy-a-home-cleivbeye088a86411oys43p8
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