Posted on: 13th Jun, 2009 05:24 pm
i have a home that has an adjustable rate mortgage and i am looking to refinance. the situation that i am facing is that before the economy went downhill we were in the middle of adding an addition and now work has slowed for my husband we are still in the middle of finishing. we just dont have the extra cash right now. i am waiting patiently to refinance but no one we have tried will refianance without a final inspection. i have never been behind on my payments but this month may be the first time in 6 years that i have been late. the arm is set to reset in october. the question that i have is should i borrow from my 401 k to get the addition completed? it should take any more than $5k and will that lower my credit score?
Borrowing from your 401k should not lower your score. In most instances, I never recommend borrowing from a 401k but in this situation it may be best.
Is it going to show on my credit report at all?
Is what going to show? The loan from your 401k will not show on credit but will reflect on your paystub when you go to refinance. If you are facing a potential late and inability to refinance with your rate about to adjust, I would say this is your only option now. Do what needs to be done to keep everything moving along and get yourself into a fixed rate before adjustments. I hope this helps...
I really like your post. Does it copyright protected?
Thanks guys!