Hi Casey - I didnt want to take up your time but im having a question im trying to answer. Home refinancing now is looking like a great option. I have an FHA, but im over the 80% ltv and pay pmi. Thinking about our career in the near future and that jobs may be available to move on, I might start searching. BUT.. my house payment is high to start somewhere new at newhire pay and im trying to get that down through refinanancing. but coming up with the cash to make the 80% isnt doable. however, i have read articles on using the 401k loan funds to purchase a house. but not re-finance. I wonder if there is a way to get a hardship from a dr or someoen to make that possible. i know i know, it probably isnt a smart idea..but might set me up later better. any ideas?
The 401k is for retirement. You can always borrow money for other things, but there is not a "retirement loan" out there. Being an airline pilot you have to retire at age 65. Working longer in commercial aviation is not an option.
If you have any other debt to pay down such as credit cards or auto loans, I would look to focus on those first. Reducing debt payments will free up cash flow for reduction in income. A great book for cash flow and debt reduction management is Dave Ramsey's Total Money Makeover. IF your only debt is your house, then saving money into a cash account to make up for the first year pay at your new airline is another option.
You could also take out a personal loan from your bank or the Delta Community Credit Union to help with cash flow for that first year.
I will give you the name of a mortgage person that we refer to that can help you look at refi options. She is a broker, thus is not pushing any one company's product. Her name is Christine Lim. You can contact her at 404-388-8800.