A Good Alternative To Refinancing
If you need fast cash, there are other ways to get it other than refinancing your mortgage or taking out a home equity loan. An often overlooked alternative to refinancing is to borrow from your 401k. If you’ve been working diligently and socking money back, you probably have thousands of dollars at your fingertips. Remember that refinancing is expensive. Because refinancing means taking out a completely new loan, the costs to get that loan off the ground run into the thousands. It doesn’t necessarily make good financial sense to refinance your entire mortgage just to get access to thousands or even tens of thousands of dollars. The upfront costs to get the loan going are often cost prohibitive. Home equity loans have origination costs too, and you will need to qualify, so your financial ducks will need to be in a row. In contrast, you do not need to qualify to borrow from your own retirement. No credit check required.
