Thanks BR & CWMI,
I'm in the US. Possession of the house is already covered in the SAPS. I'm trying to execute and prepare for divorce filing on Feb 1. My attorney has asked that we have all the property divided before then.
Thanks for the info. I've got everything setup for the re-fi and thats good to go. Currently we are bickering over the price of the house. I had it appraised in March and then recently re-appraised for the re-fi. The value of the house has gone up by 60k so that is what the bickering is about (How much equity there is). The difference is market appreciation and just differences between appraisals.
BR, as you may recall, I've got some "new" daycare expenses that I will have to cover. For my 3.5 year old and infant, the daycare is $2300 per month. I need about 20k to cover the next 2.5 years (until the 3 year old goes to school - her birthday is just after to kindergarden cutoff date
.
The loan is the simplest way to cover and the 20k will not have any significant impact on my overall 401k.
The nice thing about the 20k on the primary resident is that there is no penalty (other than potential loss in investment gains/losses) and I can extend the terms up to 20+ years. They did say I could just do a traditional loan for 5 years or just take a withdrawal (withdrawal would be a 40% tax and penalty hit). I could roll over into a IRA and maybe save a little on taxes).
I've done a very detailed budget and I'm upside down by a few hundred per month over the next year and then it goes down. So my goal is to bridge that for a couple of years.
I may just sell the house. Thats a hard one for me given everything I went through to keep it. Its also been the one stable thing in my girls life. I've mentioned selling it to my DD8 and its the only thing that's made her cry wrt divorce.
Thanks
It would seem to me that when I re-fi it would be the same as purchasing the house from her as my primary residence. Ill call the 401k folks back tomorrow and talk to someone different. See if they have a different answer.