Posted on: 20th Oct, 2010 06:10 pm
For example, my current loan is 467,000 @ 5.65%. It is a five year loan and will be up in February 2011. The interest rate will adjust to a higher rate at that point. Should I withdraw $50,000 to reduce my loan to 417,000 to obtain a lower interest rate. Thank you.
Hi teeps!
Welcome to forums!
If you're not 59 and 1/2 years of age, then withdrawing money from your 403(b) account can lead to a penalty of 10%. If you cannot afford to pay the penalty, it's better not to withdraw money from the 403(b) account.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you're not 59 and 1/2 years of age, then withdrawing money from your 403(b) account can lead to a penalty of 10%. If you cannot afford to pay the penalty, it's better not to withdraw money from the 403(b) account.
Feel free to ask if you've further queries.
Sussane
absolutely NOT! In addition to what Sussane has said.... you are going to withdraw money, pay a penalty, pay interest when you re-pay with dollars that have been taxed. This is a losing situation for you. No way you can come out ahead vs just leaving your mortgage out there at 5.65%
