🏦 How does a 401k loan impact your home down payment?

Finn

This calculator helps homebuyers weigh the pros and cons of using a 401(k) loan to bridge a down payment gap. It effectively compares the short-term savings on mortgage interest and PMI against the opportunity cost of missing out on retirement account growth. The tool is built around a short-term "bridge" scenario—like borrowing from your 401(k) until your current home sells—so it assumes you'll pay down the mortgage or recast it once the 401(k) loan is repaid. You'll want to keep in mind that it doesn't factor in 401(k) loan origination fees, potential double-taxation on the interest you pay yourself, or the risk of the loan becoming due immediately if you change jobs. It's a smart, meaningful remix of its origin view, swapping out the original "save vs. buy" math for a focused look at retirement borrowing.

Reviewed v26.8.0