I'm about to buy a house and am considering two options:
- Make a 12% down payment and pay for mortgage insurance
- Take out a 401k loan and make a 20% down payment
I'm having a hard time finding resources that really discuss the pros and cons of each of these options. Most resources that I've found are quite vague.
I understand that with a 401k loan I lose out on growth opportunity, though I've saved a lot in my 401k (12% of my gross income); I'm not worried about losing my job and having to pay back the loan.
So, which is the better of these two options and what additional factors should I consider when deciding between them?