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

Guest 0.10 Dollars($)

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

Jessica · Posted: Tue Aug 02, 2005 12:22 am Post subject: RE:

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.

Guest 0.10 Dollars($)

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.

Guest 0.10 Dollars($)

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.

Guest 0.10 Dollars($)

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.

Guest 0.10 Dollars($)

`what do i do to get a 600.00 loan

jerry · Posted: Thu Dec 11, 2008 2:52 am Post subject:

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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