This will reduce your taxable W2 income (401(k) contributions offset your taxable income) and you are paying yourself the interest on the loan while preserving the ability to build up your retirement funds.

do you use other retirement instrument to purchase the note?

But the rollover from current employer 401k in most cases can only take place when you either leave that company or reach retirement age.

Dude, go FHA. 3.5% down on owner occupied...refinance when you're ready and move out...purchase another one with FHA....repeat, grow, retire. 

I don't know if this is really a factor, but I plan to retire in about 20 years, and besides the house we are debt free.

She is retired, single and has 7 dogs.  

My name is Tyler and I'm a retired underachiever.I'm a current Grand Haven resident and was raised in Whitehall, MI.

The pay off at retirement can be worth it though. 

My very long time goal is to be "retired" at 45 years old.

If I was still an apt. broker there, I'd be looking to move (or retire on all the commissions I made from naive Californians these past 10 years)!