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How much will it cost to borrow from 401k plan?

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Guest

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Post Posted: Mon Aug 01, 2005 11:49 pm    Post subject: How much will it cost to borrow from 401k plan?
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how much will it cost to borrow from 401k plan ?
Icon Mini Profile Jessica
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Post Posted: Tue Aug 02, 2005 12:22 am    Post subject: RE:
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Hi Guest

When you borrow from your 401(k) plan account, you are required to pay loan-processing and administrative fees and also the interest on the loan. The Internal Revenue Service requires you to pay interest at a rate 2% higher than the prime rate. When you pay the interest to your 401(k) plan account, the loan becomes a fixed-rate investment in your 401(k) account.

Hope this information will satisfy your needs.

Please feel free to post further queries.

Regards,
Jessica.
nstif

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Post Posted: Fri Feb 16, 2007 9:06 am    Post subject: Getting a mortgage when you are retired
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Rather than tie up cash in retirement, I am thinking of purchasing my retirement home (when the time comes) with only 20% down. Is it difficult to qualify for a mortgage loan when you are not employed?

Thanks.
ycikv

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Post Posted: Fri Feb 16, 2007 10:39 am    Post subject:
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After you are aged 62 or more their is a special type of mortgage which is known as reverse mortgage for which you would be able to qualify.
larryellison

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Post Posted: Fri Feb 16, 2007 7:31 pm    Post subject:
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Nstif, if you already have a home then a reverse mortgage will help to convert the equity in your home into cash funds.

For getting a mortgage when you do not have employment you will have to pay relatively higher interest rate than normal.
duane doran

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Post Posted: Wed Dec 10, 2008 11:00 am    Post subject: getting loan from my 401k
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`what do i do to get a 600.00 loan
Icon Mini Profile jerry
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Post Posted: Thu Dec 11, 2008 2:52 am    Post subject:
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Hi duane doran,

I don't think its a good idea to withdraw money from your retirement account. As you are planning to borrow an amount of $600.00, I think it will be better if you look for a personal loan. However, you should keep in mind that the personal loans come at a higher rate of interest.

Thanks,

Jerry
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