Parent’s Plus Loan
$60,000 in parent's plus loan - first payment due November, 2017. Would like to pay off with 401K loan, re-finance mortgage?
Terry Says
OMG -- this is a tough one. Do NOT take a loan from your 40l(k) plan. Just don't. You'll damage your own retirement plan -- and if you leave your job it will be considered a withdrawal and subject to taxes and a 10% penalty if you're under age 59-1/2. You could consider a refi on your mortgage, pulling some cash out if you have enough equity. But get a FIXED rate mortgage --and be sure to compare payments on a 15 and 30 year fixed rate mortgage. You'll probably have to stick with 30 years to make the refi possible. Then pay down as much of the loan balance on the PLUS loans as you can because those carry high rates. I hope your child is appreciative!
