Community Chat

[smoochy]

I don't have a financial advisor to ask. so I would just like a few random anonymous opinions. My mortgage is "under water" thanks to the tanking of the housing market. Currently my home is worth about 96K (zillow.com) and I owe 105k. But my loan was done years ago when I had less than stellar credit, so my interest rate is 7.5%. Now my credit score is 788 (took a lot of diligence and self discipline to get to this point!). I know I could refi for much better terms. However being in negative equity, that's not an option. Would it be dumb to take money out of my 401k to help pay off my loan, in order to refi at more attractive terms and hopefully a lower monthly payment? I'm sixty so there wouldn't be a penalty. Though I would have a big tax bite on that wouldn't I. Arggghhh. this is very frustrating.