Financing question

[Adam Reiman]

I have a rental financed through FHA, paying PMI, totally could refi out of PMI but, not sue if I should. Been successfully rented for 4 years. I want to buy a cabin in the mountains, (within driving to work). How much down payment should I expect to buy an owner occupied residence? I make too much to qualify for USDA and would rather not bring in partners. I have a borrow able 401k but think that is bad due to borrowing before tax money and paying back after tax money.

[Frank Jiang]

Originally posted by @Matt Vogt:

If you think about any loan, you're paying back the loan with post-tax dollars, never with pre-tax.

Nope.  Interest on a regular mortgage is paid with pretax dollars.  You're losing whatever your tax rate is instantly by borrowing from 401k since you're getting taxed twice in the transaction.  Borrowing from a 401k should be a last resort and is an inappropriate action 9 times out of 10.