Should you borrow from your 401(k) to purchase a home?

Just because you can borrow from your 401(k) to purchase a home doesn’t mean you should.

Here’s why:

  • You may think you need to borrow from your 401(k) to have enough for a large down payment. However, you don’t actually need a large down payment to purchase a home.
  • If you borrow from your 401(k) and then leave the company for any reason, you will have just 60 days to repay the entire remaining balance.

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