Hi Group
Can a person apply for an equity line of credit to pay off a 401k loan if one loses his(her) job? The 401k loan is already reality with 3 years left on the balance.Losing the job could be in two months, two years, in between,or never.
I know the key would be to take out the line before one loses the job.Right? Are their any fees(upfront or annual) involved if one ends up not using the line?
Thanks
~Marty~
Marty wrote on [Thu, 2 Aug 2007 12:35:01 -0500]:
My HELOC had no opening fees at all, as I set it up with the same bank as the first mortgage. $50/year fee. Good idea to set this up now, it's far tougher to get a decent rate when jobless. JOE
Are you asking a tax question? You can do what you want with your line of credit. There can be tax consequences though.
Thumper
Thanks everyone
The only question I have left is this.Are both a HELOC & HEL tax deductible.I thought you had to show proof that you were using the money for home improvements to be tax deductible.Why wouldn't everybody use a HELOC instead of a conventional loan if it is tax deductible?
I know this is a tax question & I did post in Misc.taxes moderated group but my post has not showed up.Do you have to be a member of the group?Some times groups don't like webtvers.Thanks again everyone.Great insights.
~Marty~
Yes.
Only if you're in the AMT or if the loan balance is over $100K.
Because it puts you at risk of losing your home.
It's a moderated group. It can take a day or so, especially if the moderator is out of town.
-- Rich Carreiro snipped-for-privacy@rlcarr.com
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