Factors When Choosing Between Selling Property Outright vs. 401K Loans vs. Cash-Out Refinance
Selling property outright, getting a 401k loan, and getting a cash-out refinance are all considerations when it comes to selling your home. Here are a few things to keep in mind when making your decision:
Selling property outright:
-You will likely get less money for your home than if you were to go the traditional route of selling through a real estate agent.
-You will need to be prepared to negotiate with buyers and be comfortable with haggling.
-You will be responsible for all of the paperwork and legalities involved in selling your home.
Getting a 401k loan:
-You can borrow up to 50% of your 401k balance, but you will have to pay the loan back with interest.
-If you leave your job, you will typically have to repay the loan within 60 days or it will be considered a withdrawal and subject to taxes and penalties.
-You may be able to avoid the early withdrawal penalties if you use the money from the loan to buy another home.
Getting a cash-out refinance:
-A cash-out refinance allows you to tap into the equity you have in your home and get cash in hand.
-You will need to qualify for the loan based on your credit score, income, and debt-to-income ratio.
-You will have to pay closing costs on the loan, which can add up to several thousand dollars.
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