[quote=NicMM]I don’t agree with using credit cards as the source of fund. Because,
1. It’s hard to get $40K in one or two 0% credit cards.
2. Such big balance would drag down your credit score and therefore negatively influence the mortgage rate you can get.
3. You have to find the next available 0 cards in a year again and again.
If she loses her job in 5 years (before pays back the 401K loan), she can chose to take the rest of the loan out as an early distribution and pay income tax of that portion. Without a job, I guess her tax brake would be lower than now.[/quote]
I never said it would be over 1 or 2 cards. But if you get 4 cards and do balance transfer on $10k each card, that’s $40k. Depend how much credit she has available and how much credit she can get from those new credit cards, it might not pull her credit down that much. It’s just an option if you’re able to take advantage of it. It’s free money.
