@Creditaddict wrote:GE... look in backdoor numbers and you could call "Credit Solutions" for manual review and ask for $5k or even $10k and see what they come back... tell them you are thinking about some furniture... I think some stores still have that!
That is devilish 
!!! I will do that probably closer to the mtg thing since by then my credit profile would be better as I would have paid off the 14k. I owe you one on this, Creditaddict !!
@Creditaddict wrote:
@merryCanDream wrote:
@Creditaddict wrote:1. you could get CLI on JCpenney since it's GE card, they are sp CLI.
2. Loan on 401k for mortgage... I would not do such a thing!!
1. Thanks! Will try that. However, that is such a small CL ( I think some 500-800, don't remember) I don't know how much max they could go & if it helps.
2. Can you elaborate? Did some research on net and looks like the verdict is really split. For eg., I found this:
http://www.zillow.com/advice-thread/Borrowing-against-401K-for-down-payment/23701/
GE... look in backdoor numbers and you could call "Credit Solutions" for manual review and ask for $5k or even $10k and see what they come back... tell them you are thinking about some furniture... I think some stores still have that!
2. purely from a money stand point paying PMI has GOT TO be cheaper.
you take a loan that you against your 401k and lets say nothing goes wrong.
a. you are now making loan payments with money you paid taxes on. later when you withdraw in retirement you are paying taxes AGAIN.
b. while that money is borrowed you are loasing out on the gains of the market which based on the last 3 years would be HUGE
c. if something does go wrong and you need to file bk, or loose the house... your retirement accounts are protected... so you have lost at least what you have borrowed probably.
but the hugest is your paying taxes, then paying back the loan that is not growing in your 401k and then later you are pyaing taxes again... it's crazy business.
The whole double taxation thing with 401K loans is a myth. You pay back all loans with after taxation money. You don't pay double taxes on a 401K loan except for the fraction that is the interest.
Money is fungible. Think of it this way, if you took out the loan and put the loan proceeds aside, and then paid back the loan with the loan proceeds rather than your after tax money earned from your paycheck, would you be getting double taxed? I hope that the answer is no. Or, atlernatively, if you took $10K from savings rather than from your 401K, you would replace that $10K with after tax money the same way you would replace the money in your 401K. There is no double taxation.
The other points about a 401K loan are valid. In addition, you need to be aware of the accelerated repayment time should you lose your job/switch jobs. You'd have to pay back the loan in 90 days (I believe that is the right timeframe, but check to verify) or it is treated as an early distribution along with the penalties.
Starting Score: ~500 (12/01/2008)