A 401k loan is an employer-sponsored retirement account, where your contribution as an employee are deducted directly from your paycheck before they are taxed. This money goes to a found offered by your employer, and in some cases, your employer matches your contribution.
This investment is meant for retirement; however, you are able to withdraw money from it before the age of 59.
Learn about the up-sides of using your 401k to buy your dream home in our class.
Reasons to use your 401k loan to buy a house:
- You are borrowing from yourself.
- It has tax advantages.
- When borrowing against your 410k you will not be charged with the 10% penalty fee for early withdraws on your 401k.
- The interests paid, will be paid to you, not to any lender.
- Buy a house quicker.
We will teach you about the pros and cons to use your 401k Loan and the best way to do it in order to get your house.