Speedo said:
4knights said:
You could also take loan from your 401k if it's set up to allow this. I have no interest and the loan only cost $50.00! 5 year payback term, so I still contribute at a lower rate while paying myself back. No early pay off penalty and had the money in less than a week.
Don't forget the opportunity costs of being out of the market.
I'm sure it all depends on your bank and the terms, but, do they simply give you a check for the excess borrowed above your home's cost..? I've never borrowed any extra, we also refinanced not too long ago. It sure would be nice to take out extra for some improvements though!
I agree with No Fear about home equity line, didn't want to pay the loan fee or the interest plus you may end up being below the 20% mark and end up paying private mortgage insurance to boot.
My 401k loan was a friends idea as he takes loans from his all the time. (not pool size though) my terms allow me to take one loan at a time for a max amount then pay back in no more than 5 years or as soon as I want- no penalty, no interest and the only cost was the $50.00 for them to transfer the funds. (only possible down sides are if you lose income and can't make payment then it all becomes taxable and the loan payments are on top of normal contributions unless you decrease that amount for the loan period.)
It was a win-win for me, no interest at all! No need for another appraisal (so the housing tax assessors don't know to jack your rates right away.)