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<p>[QUOTE=&quot;Clawcoins, post: 2757633, member: 77814&quot;]It totally depends upon the situation, your ability to pay back the funds as you&#039;ll have an additional debt to drain on your revenue stream (your paycheck).&nbsp; Check if your 401K loan have to be repaid within a certain term, such as 5 years.</p><p><br /></p><p>I took a 401k loan out to buy a house to make sure I had all the cash needed to get the 25%ish the bank wanted.&nbsp; Of course, you had to divulge where you were getting all the downpayment $$ to them beforehand which the 401k loan was only 1/3 of it.</p><p><br /></p><p>FYI, I paid it all back in under 3 years.</p><p>During that timeframe though I believe my 401k investments were frozen and I couldn&#039;t change them.</p><p><br /></p><p>If you lose your job, the 401k will want it to be paid back in full immediately (90 days or something) otherwise it becomes a cash retirement distribution.&nbsp; Or if you don&#039;t pay it back within the timeframe, same problem.</p><p><br /></p><p>But research this .. i&#039;m just going by memory.&nbsp; </p><p>I looked at the rising housing market, and the cost of rent.&nbsp; It was cheaper to buy, than rent so I did the aggressive capitalization to buy.</p><p><br /></p><p>By owning vs renting, I reduced my monthly housing expenditures by nearly $600 which includes property taxes and insurance.&nbsp; FYI, I bought the house I was renting. YMMV[/QUOTE]</p><p><br /></p>

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