Posted on: 18th Jun, 2013 12:43 am
I have taken out a loan from my 401k account. Now, I want to take out a mortgage. I don’t even have a lot of money saved for down payment. So, what should I do – should I pay off the 401k loan or save for down payment?
Rather than paying off the 401k account immediately, you can save the money for the down payment if you are taking out the mortgage immediately.
Hi Liza,
If your debt to income ratio is too high, then it will be better if you could pay off your 401k loan and then look out for a mortgage.
Thanks
If your debt to income ratio is too high, then it will be better if you could pay off your 401k loan and then look out for a mortgage.
Thanks