The benefits and drawbacks of borrowing from your 401(k) to make a home down payment

When you're trying to buy a home, it's best to make a 20% down payment. Doing so allows you to avoid having to buy private mortgage insurance (PMI). PMI ensures lenders don't end up with out-of-pocket losses if they have to foreclose. Unfortunately, you cover the expenses of PMI, although it provides you with no personal protection.

Christy Bieber | USA Today

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