New member and have a question on a real estate loan

[Michael White]

Hi all - first time poster, and I have a question on best approach. For my current primary household, I used a 401K loan as a down payment. There's 36k remaining on the loan. I am currently putting an in-law suite addition on the house and using a home equity loan to do the reno; my question is should I pull out an additional 36k from our equity to repay the 401k?

Note: The 401K loan has to be repayed in full if I want to pay it off early, otherwise I have a scheduled $75 payment each pay period for the next 28 yrs.

[Rick Albert]

It really comes down to the interest rate and what you could use that money for. Could the remaining balance of the HELOC go towards another appreciating asset?