Mortgage Payoff

[ozgear]

CA. Judging by the way the feds are desiring to step in and rescue Fannie Mae and Freddie Mac, and the way the economy is heading down as a result of (bottom line) GREED, would it be a wise move to take some of my 401K, which is losing money, and payoff what little I have left on my mortgage? Question is, which one will be worthless first?

[HomeGuru]

Originally Posted by ozgear

CA. Judging by the way the feds are desiring to step in and rescue Fannie Mae and Freddie Mac, and the way the economy is heading down as a result of (bottom line) GREED, would it be a wise move to take some of my 401K, which is losing money, and payoff what little I have left on my mortgage? Question is, which one will be worthless first?

**A: you don't need the mortgage interest deduction on your taxes?

[seniorjudge]

Originally Posted by HomeGuru

**A: you don't need the mortgage interest deduction on your taxes?

Good question.

Another question: Is real estate in your area declining in value? Going up? Staying the same?

I agree about the GREED: There has been a lot of predatory borrowing.

[HomeGuru]

Originally Posted by ozgear

..... would it be a wise move to take some of my 401K, which is losing money, and payoff what little I have left on my mortgage? Question is, which one will be worthless first?

**A: you are comparing apples and oranges. 401K is an asset and mortgage is a liability.

[ozgear]

To HomeGuru first: not that much left on the balance, mainly principle and very little interest.
To seniorjudge: california markets are pretty much on the decline, my place is valued at double of what was initially paid.
To HomeGuru: Both are assets, in my opinion.

[nextwife]

You're crazy to take out 401K funds to pay down a mortgage that's amortized to the point that it's mostly principal.

BADDDDDDDD plan.