I'm sure this has been discussed on here before but just wasn't able to find. I'm curious if longer-term it is better to borrow from 401(k) or to refinance and take money out of home equity. Would love any feedback on pros and cons of each.
My wife and I are both decent income earners but with two kids and a couple of emergency situations we ended up having a little over space 20k in loan debt. We do run at a little bit of a surplus each month but not enough to pay off the loan in a very timely manner and I expect a few more large expenses coming up mostly centered around nice to have and not absolute needs but things that we need to get done.
For some additional context I owe about 175k on the house, originally purchased for 255K, currently appraises for up to 340 K but I know the market obviously fluctuates and we are not looking to move anytime soon. I have around 300 K in my 401(k) and contribute 9%. I am 40 years old and expect to be working at about the same income level for the next 20+ years.
Would like to get our debt cleared and maybe even have a little bit extra to knock out a few things like projects around the house but I am unsure which one of these two options might be better for me long-term or in the short term. I am looking to maybe get 30 to 40 K to pay off and get back on track. I expect a rather large bonus but realistically will probably not be until another year or year and a half from now.
Thanks in advance and would love to hear any advice you may have!
Submitted January 22, 2019 at 09:42AM by StinkyFeetSandwich http://bit.ly/2R7WT7E
