What's the best option? HELOC vs Refinance vs 401K loan

Bebzmle

LoanSafe Member
Mar 11, 2013
9
0
1
Hello,
Not sure if I'm posting this in the right forum, but I want to ask your opinions based on your experiences. I need $10K emergency money and I'm trying to figure out which one is the best option. My mortgage is current and my home has increased in value at least $50K for the last 3 years. Rate of my mortgage is 4%. I'm planning to pay back this 10K within 2 years. Which option is best? Thanks in advance.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,059
162
63
San Diego, California
www.loansreduced.com
You're absolutely asking this in the right forum. For 10K I think the options I would look at would be in this order for me personally:

1. 401K loan - no matter the rate of interest that you borrow you're still paying it back to yourself vs a bank.
2. HELOC if you qualify - HELOCS require a significant amount of equity and usually perfect credit
3. Refinance - There aren't enough details of what you have mentioned above to give you an idea of what you would be looking at but feel free to shoot me an e-mail at: Erik.San[email protected] and I can go over a few options with you.

As you can see I put option #3 and myself helping you last, I would never direct someone in a route that I personally wouldn't take. You can also give me a call at 619-379-8999 if you have any other questions.
 

Bebzmle

LoanSafe Member
Mar 11, 2013
9
0
1
Erik,
Thank you for your candor in this matter. I will borrow from my 401K. You're absolutely right--I'd much rather pay back to myself instead of the bank. Again, thank you!!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,059
162
63
San Diego, California
www.loansreduced.com
Very welcome, don't forget about me if you have any friends or family that need help. I lend in all 50 states :)