micha8st t1_jadhrfp wrote on February 28, 2023 at 5:31 PM

How much can you put down without the 401k money?

How much will PMI cost?

how much interest will you pay the 401k in loan servicing?

And... how much are you losing on average by "selling" good mutual funds in your 401k?

We did not put down 20% our 6.625% interest rate back in the early 90s. 6.625 seemed like a great rate back then. A few years later, the value of our home went up. By paying for a formal appraisal of our house, we were able to prove that we exceeded 20% equity-to-value and the lender removed PMI. This worked for us because we had a conventional loan. My understanding is that it also works for most VA loans but that PMI cannot be removed from most FHA loans.

tomsen12 OP t1_jadlmr7 wrote on February 28, 2023 at 5:55 PM

Sorry, I don’t have answers to all the questions now. I’ll check with the lender.

401k loan interest is 7.5%. Currently, the conventional loan interest rates are above 7%. My interest rate lock will happen around mid March. The property is in Dallas where property prices have gone up 200% in the 2-3years, so I don’t expect any appreciation after purchasing the property.