401k or refinance

[Jose Ramos]

Hi there,
I am new to investing but my question is regarding my father and his house. He is thinking about refinancing his home.
My father is 62 yrs old and thinking about working 5-8 more years. He has about $300k in his 401k.
He currently owes 68k on his house
Bought the house for $111k @ 7.8 interest
According to last estimate, House is worth 178k
Looking to refinance to 3.2% for (20 yrs?).
Should he refinance or take a loan against his 401k?

Thank

[Steven Hamilton II]

Jose Ramos,

In that case I would refinance to the low rate and go for a lower term to match his current payment. Or he can go for a long term and make large additional payments.

-Steven the Tax Guy