cashing in my 403b to pay my mortgage
I sold my house with a land contract and must have it paid off by this September 2024. I owe about 10,000 which I can’t afford to pay in 8 months. I’ve got a 403b worth between13,000 & 15,000 (I’m waiting on my Dec stmt.)I don’t have any other savings. I want to know what you think about me cashing out the $10,000 and just leaving the balance in my 403b?
Terry Says
I think you’ve caught yourself in a big hole by creating a land contract that lasts longer than your original mortgage. Assuming I understand your predicament!
But since you still are the owner of the property under the terms of your land contract (I hope — and do check with the lawyer that created this contract), then you should be able to get a short-term home equity loan on the property until the purchaser pays off the balance.
Removing money from your 403(b) — and that’s assuming your employer allows a loan — is problematic. Ifyou don’t repay it then you will pay taxes on the money and an early withdrawal penalty of 10% if you’re under age 59-1/2. YOu’ll be out of the frying pan and into the fire — AND you’ll destroy your retirement.
