This summer marked a major transition in your life. With your husband starting only his third job ever since graduating from college, he is both excited and anxious about this change. The last six years with his second job, however, have been a test and the financial promises that this new job offered fell short. As a result, you ended up taking a loan out from his 401K to meet some unexpected home expenses. And while you were nervous about this loan it was only from the small 401K that he had for this one job, and it was basically a loan that you were taking from yourself.
When your husband announced that he was interested in this third and final job change of his career, however, you were faced with a decision about what to do with this loan. One option was to look at adding some of the amount on to the value of your home loan, but the mortgage rates are not in your favor. The mortgage rates that you have had on your home have been excellent and you did not want to mess with those. You did, however, have to find a solution.
In the end, you realized that you would have to pay taxes, but no penalties if you just cashed out the rest of that small 401K. This alternative would allow you to keep the lower mortgage rates on your current home loan, as well as provide you some immediate cash that you could use to pay off a significant portion of your current debt.
Paying off this debt would also mean that you would free up more money every month to tackle the last of the remaining debt and then even work on completing the payments on your home. Instead of rolling more debt into your home you could actually work with the mortgage company and pay the house off sooner as well. You are actually a little overwhelmed with the possibilities that this job change is providing. You would not have had the options with this 401K if your husband had not changed jobs, and you are more than certain it will be a beneficial decision in the long run.
What Are the Most Current Mortgage Rates That Your Bank Is Offering?
If you are like many Americans who are approaching the ten year window until retirement you are likely looking at ways that you can eliminate the rest of your monthly payments so that you can afford the kind of retirement that you want. And while there are many Americans who are still struggling to handle the debt that they face, there are actually a number of soon to be retirees who find themselves in a great spot if they can find a way to stay working for another five to ten years.
Talking with your mortgage company to make sure that you are able to find the right solution to the goals that you want to achieve is a great first step in achieving the retirement goals that you are trying to reach. From job changes to downsizing the home where you live, many couples take advantage of every opportunity that they have to eliminate the last of their debt during the last days when they are working.
Having a home that is paid for is the perfect step in making sure that you are able to live the kind of retirement that you have always wanted. Understanding the up to date mortgage rates that are available to you for your properties is the first step in making sure that you can achieve these goals.