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Decrease 401k contribution to increase house down payment?

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grnclvrs
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Decrease 401k contribution to increase house down payment?  Reply with quote  

Hello all, I apologize if this has been beaten to death already but the search function did not return any information that I could use.

I currently max out my 401k contribution at 12% of my earnings. My company gives me a match of 4% if I contribute 5%. I'm contemplating dropping my 401k contribution to 5% for 6 months to increase my down payment on a house. This is to ensure I won't have to pay PMI. This strategy will give me an extra $3750 toward the down payment (my effective tax rate is 25%). Is this a good strategy or am I better off to keep contributing the max and take a loan against the 401k? I am 46 years old and have approx 150k in the account.
Post Thu Oct 16, 2014 2:03 pm
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