Is it a good idea to use a 401k loan to pay down a mortgage? I am ok with the impact on my monthly cash flow and the potential to miss out on market gains.

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Out of curiosity, would you totally pay off your mortgage?

I like 401k loans because there is no taxable event and you repay the interest to yourself.

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My mortgage is sadly too large for payoff. I was thinking of making principal curtailment to meaningfully reduce interest portion of my monthly payment. Re 401k, I agree and love that I will be paying myself.

“Is it a good idea to use a 401k loan” - no. Doesn’t matter what the rest of the sentence is. It is not a good idea. Sure someone could give a scenario where it could be helpful, but it is never part of a pragmatic, long-term, wealth building strategy.

Remember your paying yourself back with interest.

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