No, it would not make sense to lose out on all future tax-deferred growth of your 40l(k). Having to make a mortgage payment will keep you under pressure to find a new job -- and that may not be so bad! But what you SHOULD do now -- before you lose your job, is make sure you have refinanced to the lowest fixed-rate mortgage possible. That will make the burden bearable. If you're worried about a correction in the market, just make a more conservative choice of investments in your retirement accounts, perhaps more in a money market fund where you can't lose money!