Sunday, July 10, 2011

Would it be a good idea to pay off my mortgage with my 401k? I am 25, owe $19000 on my home?

401k allows you to make penalty free withdrawals for purchasing a principal residence and I figure since I started my 401k at 24 I started very early (I have plenty of time to catch up). This home I bought was a short sale fixer upper and I am merely trying to see my options. It would be nice to own the house and not have to make that payment every month. If you find any fault in my logic please tell me. Is this a good idea or not and why? Be specific. Thanks

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