The difference is likely the fees.It depends on how much the equities are making in the 401K and what rate of return you can make with real estate.If you can make 2% more annually with real estate, I will argue that you the extra return will more than cover the penalties and provide you more flexibility with access to your own funds.

Got it, so are you suggesting I strongly considering paying the pre payment penalty and refinance now?

Recently, I received a penalty notice from the WCB for not carrying workers’ comp coverage during 2024/2025. 

Distribution(Subject to income tax and potentially a 10% penalty if below the age of 59.5)3. roll it over into a SDIRA and invest in real estateBest of luck!

Is it the extension or the maturity penalty.

Things that impact these types of loans are your credit score, the loan to value, the prepayment penalty, and DSCR ratio as others mentionif any of those is off it will impact it greatly 

It seems that the pre-payment penalty is the sticking point.Is a blanket DSCR loan for 6-8 SFR homes with no pre-payment penalty available in the marketplace?

Unfortunately, a lot of people don’t realize that following that kind of advice can end up costing them huge penalties down the road.

Quote from @Ernie Rodriguez: I locked someone in at 6.35% with 2 points last week. 30YR DSCR refi, 2 year prepayment penalty Miami, FL Who did you use?

I have been quoted a 9.9% Rate with a 1 year 5% Prepayment penalty.