CassieNet News :: In the process of getting a mortgage

In the process of getting a mortgage :: RE: borrowing from 401k

Author: jessica
Subject: RE:
Posted: Tue Aug 02, 2005 7:22 am (GMT 0)
Topic Replies: 1

Hi Guest

When you borrow from your 401(k) plan account, you are required to pay loan-processing and administrative fees and also the interest on the loan. The Internal Revenue Service requires you to pay interest at a rate 2% higher than the prime rate. When you pay the interest to your 401(k) plan account, the loan becomes a fixed-rate investment in your 401(k) account.

Hope this information will satisfy your needs.

Please feel free to post further queries.

Regards,
Jessica.

For the full story see:
http://www.mortgagefit.com/discuss/about710.html
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