401k vs Hard Money?

[Nancy Allen]

My company's 401k will allow me to take loans of up to 50% of my balance.  I believe the rate would be around 5% and all the interest goes back into my 401k.  On the other hand a hard money lender collects the interest...and likely above the 5% on my 401k.

So the question is under what conditions would the hard money be preferred over paying myself the holding costs on a 401k?

Anyone out there hitting their 401k who can relate any personal experience?

Thanks all...

Mike & Nancy Allen

NestProps...

[George P.]

not sure if you can take up to 50% of the balance. i think you are thinking up to 50K, not %. 

i took out 50k for a house last year. at 3.25%. the only drawback is that the 50k i took is NOT working for me in that account.

it was a great move and i am happy i did it. i'd do it again in a second.