if i should pay off my home equity loan
My wife and i are 74 years old and we owe $96,000 on our house. The question i have is i was wondering IF i should take $19,000 out of my 401K to pay off my home equity loan.. We have $630,000 in our 401K now, Our interest rate on our home equity loan is 4.4%. We are paying 3.2% on our house. I could use your opinion on this matter. Thank you so much..
Terry Says
I would definitely take the money out and pay off your home equity loan. It is a losing proposition, and likely rates on it will go even higher. And since you are 74, you must take a required minimum distribution anyway. Do it now — and make sure they withhold taxes from your distribution so you won’t be surprised by a big tax bill next year!
