I’ve borrowed from my 401k before as well. I think in terms of the cost of getting money, this isn’t a bad way to do it. For a home purchase, I think you could also give yourself longer loan terms as well to stretch out your payments if you need to.
I did notice various small fees they charge, but in the grand scheme of things…for 50k, there aren’t many cheaper options to access money. Especially since you’re paying the loan interest back to your account.
If someone mentions it, in regards to double taxation, here is a write up about that as well (there isn’t any):
Guaranteed savings interest is very low now so tapping any cash earning low returns and saving $300 on PMI or whatever it costs sounds like a good idea to me.
