| Author |
Message |
|
|
MichiganVicki
Guest
|
 Posted: Wed Oct 07, 2009 10:55 am Post subject: 401K to pay off mortgage *a new twist* |
|
|
I have a twist on whether using your 401K to pay off mortgage. We have lost quite a bit this year with the downswing in the market...and since my husband's spousal support is based on his income when he retires (in 7 yrs) and our home will NOT be paid off by then...would it be better to use our 401K to pay off when he turns 59.5 (in 3 yrs) thus saving the mortgage interest and Lord knows what the courts will deem on his retirement income? We are thinking in the terms of debt free with less income is better than more income with debt and higher spousal support (which we cannot predict)
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
|
|
 manoj_gopale
Joined: 16 Feb 2009
Posts: 481
0.59 Dollars($)
|
| Posted: Wed Oct 07, 2009 11:06 am Post subject: |
|
|
MichiganVicki
Welcome to mortgagefit,
It is a dream (and it has to be) of every person to lead a debt free life.But now my question is if you remove money from your pension kitty don't you think you will have any problem once you retire.I just wanted to convey you that if you do not pay mortgage from your 401k then how much interest money you will be saving??
If that money is much bigger than what you will earn as a interest if you keep the 401k,then you should remove 401 k and pay off the mortgage.
But if the interest earned on your 401k money is more than that of the interest paid towards mortgage then I will advice you to keep the mortgage..
I think you can take help of PC and use a simple excel sheet for better understanding.
keep in touch.......
 |
|
|
MichiganVicki
Guest
|
| Posted: Wed Oct 07, 2009 11:31 am Post subject: *A New Twist* |
|
|
| Thanks for the insights...unfortunately...we cannot predict the market but at the last quarter our account was down 9%. If we could predict the interest and what the courts will set for spousal support...we would be a step ahead for sure...for now we are paying extra on the mortgage until we figure it out...nothing will be done for at least 3 yrs...hopefully the market will improve...until then...the money stays put... |
|
|
Guest
|
| Posted: Wed Oct 07, 2009 12:59 pm Post subject: |
|
|
even if you take decsion today about removing the money from 401 K, you will not be able to able to remove it immediately.
What type of interest rate on your mortgage you have? floating or fixed??
If you can tell me your mortgage interest rate ,I could be able to help you on this matter.
keep in touch......
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
|
|
