> -----Original Message-----
> From: Kevin Graeme [mailto:[EMAIL PROTECTED]
> Sent: Thursday, January 05, 2006 6:24 PM
> To: CF-Community
> Subject: Re: Mortgage Suggestions?
> 
> On 1/5/06, Jim Davis <[EMAIL PROTECTED]> wrote:
> 
> > We're buying a house at $145,000 and am borrowing the 20% down payment
> from
> > my 401k (that loan will be paid back in 10 years via payroll deduction)
> and
> > we're looking for a 15 year mortgage.
> 
> That bit would scare the willies out of me and I'd need to see the
> numbers run to know if the interest benefit from paying a 20% down
> makes up for the loss of interest in the 401k.
> 
> Is the loan you're planning on paying back just the initial 20% amount
> or the amount after 10 years accrual had you left it there?

The loan is the principle plus 6% interest paid back into my 401k account
via payroll deduction.

We had the option to "keep" the money (permanent withdrawal as a taxable
capital gain) but (I think you'll agree, wisely) decided not to.  ;^)
 
> Are you required to pay the full 20%? I know when we got our loan we
> only paid a little more than 10% and with an accelerated payment
> schedule got rid of the PMI in less than a year.

We've been talking about that but so far the numbers work out ever so
slightly better this way (in the range of $3-$6 per month).

Jim Davis


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