Can we use our 401k or take out a mortgage - 15 year fixed?

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We are building a new home and need to take out a loan - about $200K. My husband's 401k can more than cover this. Upon applying for a 15 year fixed (@250K)- the interest was a whopping 147K. How much can we borrow from the 401K? We also have an ok separate retirement account that i was think about tapping into. We need to save for 2 middle schools students to go to college. It seems that 147K interest would be great for college - no? Please advise if you can - Its all a racket - thanks -

Can we use our 401k or take out a mortgage - 15 year fixed?

not sure if you are looking at this correctly. The total interest payments may be $147K, but they are paid out over 15 years, plus the gov't will let you deduct the interest payments, which will reduce it by 30%. Using the 401K is OK, but there are usually rules set by your company about how much you can withdraw and for what purposes. You will still need to repay your 401K with interest (essentially repaying yourself), but not get the deduction from the governme

Can we use our 401k or take out a mortgage - 15 year fixed?

I believe you can only use a 401K to borrow against for a home if it is your first home.

Can we use our 401k or take out a mortgage - 15 year fixed?

Whatever you do, DO NOT tap into your retirement accounts! You will pay rediculous fees and penalties, so if you can't swallow the interest, you definately won't want to pay all the penalties.

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Can we use our 401k or take out a mortgage - 15 year fixed?

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