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Thread: Current mortgage and TSP loan

  1. #1

    Default Current mortgage and TSP loan

    guys please do some sanity check for me here..

    currently I own a home in MD.

    Rate: 2.125% 15 years
    I am currently on my 6-7 years of the loan.
    currently owe 141k


    Current TSP rate is 2.375%
    toying with the idea of taking out the max TSP residential loan to pay down the principal and refinancce to a 30 years mortgage. Is this a bad idea? I know it looks bad on paper, but I dont know why it seems like a good idea to me. Maybe I am thinking that the TSP home loan is a different type of interest accurring loan.

    If I were to take out the loan I would pay 9-10k in interest in 15 years.


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  3. #2

    Default Re: Current mortgage and TSP loan

    the only problem i see with that scenario is the house is in maryland. i wouldn't buy a house in maryland even if they threw in delaware for free. there's greener pastures out west homes, greener pastures.
    100g

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  5. #3

    Default Re: Current mortgage and TSP loan

    Quote Originally Posted by burrocrat View Post
    the only problem i see with that scenario is the house is in maryland. i wouldn't buy a house in maryland even if they threw in delaware for free. there's greener pastures out west homes, greener pastures.

    lol
    i think we are 5-6 years too late for this talk.

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  7. #4

    Join Date
    Sep 2006
    Location
    Rocky Mountain High
    Posts
    6,960

    Default Re: Current mortgage and TSP loan

    If you itemize your taxes, you would loose the mortgage tax deduction. You would also loose the earning potential from the money you take out of your TSP.
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.

  8.  
  9. #5

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    2,274

    Default Re: Current mortgage and TSP loan

    I vote for bad idea. You have a great rate now, why complicate it & pay more in the long run? Sounds like you are looking at the payments or your monthly cash flow.

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  11. #6

    Default Re: Current mortgage and TSP loan

    i've used tsp regularly to contribute and get free 5% fake gov future promise money, then take my contributions back out in form of loan, it's like doing the laundry only it pays better. my balance consists mainly of gov match money and i've spent all my contributions on hard tangible things of immediate and future value, copper and lead do not degrade over time with inflation, plus it's fun to appreciate them now. it is a conscious decision not to run the digital fake ones and zeros "money" treadmill. in fact, i am taking a 0% advance on a credit card right now to pay off my last tsp loan so i can borrow more in 60 days which i will use to pay off credit card advance, further my physical and career position with a move, and then buy more stuff and things. i came here naked, hungry, broken and penniless, and that is fully how i intend to leave. life is meant to be lived. chk chk.
    100g

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  13. #7

    Default Re: Current mortgage and TSP loan

    I took out a TSP residential loan but from what I recall, you can only get one if your home is a new purchase.

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  15. #8

    Join Date
    Aug 2008
    Location
    Pensacola, FL
    Posts
    6,312

    Default Re: Current mortgage and TSP loan

    I agree with evilanne. I vote for bad idea.

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  17. Default Re: Current mortgage and TSP loan

    Sounds like you took a 15 to get the mortgage completed faster, now you are reneging on that goal

    Sent from my SCV32 using Tapatalk


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  19. #10

    Default Re: Current mortgage and TSP loan

    Curious as to why you are considering going to a 30-year loan when you only have 8-9 years remaining.
    I think the only reason I would consider this is if I was having a difficult time making the payments.

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  21. #11

    Join Date
    Feb 2012
    Location
    Arkansas
    Posts
    3,277

    Default Re: Current mortgage and TSP loan

    Bad idea.

  22.  
  23. #12

    Default Re: Current mortgage and TSP loan

    Quote Originally Posted by ripper View Post
    Curious as to why you are considering going to a 30-year loan when you only have 8-9 years remaining.
    I think the only reason I would consider this is if I was having a difficult time making the payments.
    its
    a little bit difficult the mortgage is like 1700 with monthly HOA and everything tax on... it currently being rented out now but the money from renting out the place doesnt cover everything.

  24.  
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