• Family guarantee financing: 8.5% repaired price, 15-seasons title, $494 monthly payment
• 401(k) loan: 9.5% fixed price, 5-seasons identity, $step one,049 payment

However, the new 401(k) mortgage try smaller when it comes to overall notice reduced, costing $several,940 during the attention costs compared to the $38,920 with the home security loan.

Other factors to adopt

• HELOCs and you can home guarantee finance require homeownership and you may enough house collateral.
• A good credit score (constantly 680-700 or even more) is typically required.
• 401(k) funds would be a history lodge, used on condition that almost every other affordable choice commonly offered.
• Consult a financial advisor to check on your unique situation and you may talk about the mortgage alternatives before carefully deciding.