Refinance boat loan

[lrak]

Re: Refinance boat loan

Not in debt over my head either for toys. 2 car payments ...

You have 2 car payments? That's an awful idea. Never had one. Always paid cash for them.

(Waiting for the person who paid cash for their houses to come along and tell me how dumb I am. ;-))

 

[dingbat]

Re: Refinance boat loan

I can use my home line of credit for that and I don't plan on changing jobs for the next 10 years or so, so I don't really see it as an issue.

I hope your self-employed. I thought the same thing after being in the employment of one company for over 30 years. worked for them as a consultant until I found a full time job which took over a year. Fortunately, we take care of our finances so it wasn't much more than a long extended, stress filled vacation.

 

[greenbush future]

Re: Refinance boat loan

The 10% penalty and all those taxes you will owe come Jan 1st nets you out at about 50% of your money being taken or owed to the govt. It's the worst choice we can make as self managed retirement programs go. No one wants to pay 50% to get at money that is set up for retirement.
I took an early disbursement on one of my past employers programs after I left, and I have regretted it ever since. That $20K I took out 30 years ago, would be worth well over $100K today if I would have just left it be. It took me 4 years to replace just the 20K, and by then the market changed, so the huge gains I would have enjoyed were no longer there. It will mean I will work a couple extra years past my goal to retire. It was the single largest financial mistake I have made. Pay that loan back if you can, learn from my mistake!!

 

[agallant80]

Re: Refinance boat loan

I hope your self-employed. I thought the same thing after being in the employment of one company for over 30 years. worked for them as a consultant until I found a full time job which took over a year. Fortunately, we take care of our finances so it wasn't much more than a long extended, stress filled vacation.

It was a joke.

 

[rivermouse]

Re: Refinance boat loan

If you "walk away" from any real debt I understand that the legal judgement against you can indeed involve your home as an asset they can put a lien on. Someone tell me if this is not so .

 

[hungupthespikes]

Re: Refinance boat loan

You don't know how these loans work. If you have $100K in your 401K and you take a $40K loan, you now have $60K in your 401k and any gains you have are on that $60K. If you don't understand this, you seriously need to talk to a financial adviser.

I won't even discuss #5 because if you don't even understand #4, you have bigger problems.

Not all lenders have the same way of doing it.
I had a 30 dollar administration fee. That was it.
The 401k stayed the same, no reduction. All the loan payments were paid into my 401k and all the interest was paid into my 401k also.
At the end of the 3 year loan, the 401k was never less than the original balance, and interest was paid on all amounts paid into it. (original balance, normal deposits, loan payments, interest from the loan)

The plus for the 401k lender was the increase in the 401k amount. Instead of just the usual amount, now they get the loan money on top. They also show a better return on their investments than their competition (higher loan rate).

The bad parts, the rate was higher than the credit union (but, you pay yourself) , and after the loan is paid off, the paycheck deduction stayed the same until YOU drop it back down to the original amount.
Don't expect any banker to say no to more deposits/money for them to use. :grumpy:

Sounds like the OP's state/lender has the same guide lines as mine.

Like you said, "talk to your financial adviser", make some phone calls and make sure how it works for you.
huts

 

[bonz_d]

Re: Refinance boat loan

Kind of like when I took a loan against a savings account I have. Principal is never touched other than those funds are frozen and cannot be withdrawn. Principal continues to earn interest also. As the principal on the loan is payed back the amout available in the savings account to withdraw increases with each payment. But then just ask bruceb he'll tell you as I don't know anything!!!!!

Also have 2 401k between the wife and I. There is also a difference between them. She is able to make loans against hers while mine will not allow that.

 

[bruceb58]

Re: Refinance boat loan

Kind of like when I took a loan against a savings account I have. Principal is never touched other than those funds are frozen and cannot be withdrawn.

Everything You Need To Know About Borrowing Against Your 401k ? | 401K Calculator

When you take a 401(k) loan, you specify the investment account(s) from which you want to borrow money. Those investments are liquidated for the duration of the loan.

 

[Home Cookin']

Re: Refinance boat loan

If you "walk away" from any real debt I understand that the legal judgement against you can indeed involve your home as an asset they can put a lien on. Someone tell me if this is not so .

T'ain't so. Sometimes. Other times, tis so. The question is way too general.

You can't "walk away" from any debt or it isn't debt. You can sneak away, run away, slink away, hide from it or maybe discharge some or all of it in bankruptcy--but every method comes at great cost to you, especially in the long run, so you have to make a careful analysis and compare the cost of paying the debt against the cost of avoiding it.

The process of putting judgments against a home and the available debtor protections vary from state to state, as well as from the circumstances and the nature of the debt. There are state "homestead laws" which are very technical and limited and DO NOT PROTECT THE WHOLE HOME. There are dynamics of debt collection where the marital status of the debtors and the nature of the debt and the quality of the asset and its ownership come into play, and may, OR MAY NOT, protect the home, or some of its value.

The process is not simple and never believe the late-night TV ads that say it is. Don't rely on a short answer and never consider someone else's experience as having ANY relevance unless they are your double living next door.