Loan on house or use credit?
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Loan on house or use credit?
| Thu, 07-17-2008 - 1:13pm |
We are looking at major foundation work on our paid for house. I hate to have a mortgage -- it worries me that if we can't pay, then we lose the house. I have some offers for 6% or so for life from various credit card companies. What do you think? I guess we could get a home equity loan, but that puts the house at risk. Just frustrated and worried right now. How about loans from 401K (for me, it's a 403B, since I am a teacher)? Would that be safer?
Thanks,
Megan
Thanks,
Megan

Hi Megan - it's rarely a good idea to borrow from your 401(k) (or equivalent).
All my best,
Danni
I would leave the retirement funds alone, and go with a cc or HELOC....just check the fees on both and go with whichever you can get for cheapest.
Megan,
Do you make enough money to pay for the loan?
I guess I really have a mental block on a home equity loan -- and from what I can see, the interest can change on a home equity line of credit (true??).
We were told we should do this foundation work fairly soon since the house would not be able to withstand much of an earthquake. We have cement foundations that have crumbled in some areas (yikes).
My husband gets about $800.00 per month from S.S. so the extra money is up to me to find.
Thanks for thinking about this with me.
Megan
Megan,
I hope you get at least 3 estimates for the work.
Megan