Run the numbers very carefully. Keep in mind:

1. You’re paying back the 401k loan in after-tax dollars.

2. The interest paid on the 401k loan isn’t tax-deductible.

3. If you change jobs or get laid off, you may have to pay back the loan in a lump sum or pay $$$ in taxes and penalties.

4. PMI isn’t forever. In the event that prices go up even modestly you should be able to get it removed after a few years.

5. There are lots of PMI options, including single-premium MI.

6. Oh wow, I just realized that I get to deduct my VA funding fee. Ka-ching!