[UCguy]

Wow! lots of good ideas. Thanks guys and gals. Very interesting. I have to crunch a lot of numbers about money saved on PMI vs taxes on money not put in 401k and discuss options with my wife. She’s having a very strong, delayed nesting instinct.

The problem is not just getting 20% down which we could accomplish if we try hard in 2-3 years, but the extra cash reserves.

I hate to piss away money on PMI too. The risk with 401k loans is the forced early repayment thing though. I hear you UCGal.

Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.

[UCguy]

Wow! lots of good ideas. Thanks guys and gals. Very interesting. I have to crunch a lot of numbers about money saved on PMI vs taxes on money not put in 401k and discuss options with my wife. She’s having a very strong, delayed nesting instinct.

The problem is not just getting 20% down which we could accomplish if we try hard in 2-3 years, but the extra cash reserves.

I hate to piss away money on PMI too. The risk with 401k loans is the forced early repayment thing though. I hear you UCGal.

Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.

[UCguy]

Wow! lots of good ideas. Thanks guys and gals. Very interesting. I have to crunch a lot of numbers about money saved on PMI vs taxes on money not put in 401k and discuss options with my wife. She’s having a very strong, delayed nesting instinct.

The problem is not just getting 20% down which we could accomplish if we try hard in 2-3 years, but the extra cash reserves.

I hate to piss away money on PMI too. The risk with 401k loans is the forced early repayment thing though. I hear you UCGal.

Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.

[UCguy]

Wow! lots of good ideas. Thanks guys and gals. Very interesting. I have to crunch a lot of numbers about money saved on PMI vs taxes on money not put in 401k and discuss options with my wife. She’s having a very strong, delayed nesting instinct.

The problem is not just getting 20% down which we could accomplish if we try hard in 2-3 years, but the extra cash reserves.

I hate to piss away money on PMI too. The risk with 401k loans is the forced early repayment thing though. I hear you UCGal.

Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.

[UCguy]

Wow! lots of good ideas. Thanks guys and gals. Very interesting. I have to crunch a lot of numbers about money saved on PMI vs taxes on money not put in 401k and discuss options with my wife. She’s having a very strong, delayed nesting instinct.

The problem is not just getting 20% down which we could accomplish if we try hard in 2-3 years, but the extra cash reserves.

I hate to piss away money on PMI too. The risk with 401k loans is the forced early repayment thing though. I hear you UCGal.

Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.

[UCguy]

The 401k loans have to be repaid in 10 years max. And it’s not exactly interest free – rate is 4.25% – but it goes back to yourself, i.e. your 401k account. Usually it has to be repaid MUCH faster, since one probably WILL change jobs in 10 years.

We’ve been going to open houses in our areas of interest for about 1 yr now.

[UCguy]

The 401k loans have to be repaid in 10 years max. And it’s not exactly interest free – rate is 4.25% – but it goes back to yourself, i.e. your 401k account. Usually it has to be repaid MUCH faster, since one probably WILL change jobs in 10 years.

We’ve been going to open houses in our areas of interest for about 1 yr now.

[UCguy]

The 401k loans have to be repaid in 10 years max. And it’s not exactly interest free – rate is 4.25% – but it goes back to yourself, i.e. your 401k account. Usually it has to be repaid MUCH faster, since one probably WILL change jobs in 10 years.

We’ve been going to open houses in our areas of interest for about 1 yr now.

[UCguy]

The 401k loans have to be repaid in 10 years max. And it’s not exactly interest free – rate is 4.25% – but it goes back to yourself, i.e. your 401k account. Usually it has to be repaid MUCH faster, since one probably WILL change jobs in 10 years.

We’ve been going to open houses in our areas of interest for about 1 yr now.

[UCguy]

The 401k loans have to be repaid in 10 years max. And it’s not exactly interest free – rate is 4.25% – but it goes back to yourself, i.e. your 401k account. Usually it has to be repaid MUCH faster, since one probably WILL change jobs in 10 years.

We’ve been going to open houses in our areas of interest for about 1 yr now.

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

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