refinance should you claim ira savings ?

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date refinance should you claim ira savings ? Sportsfan 02-05-2008  Re: refinance should you claim ira savings ? joetaxpayer 02-05-2008  Re: refinance should you claim ira savings ? jIM 02-05-2008  Re: refinance should you claim ira [and/or 401(k)]... Elle 02-05-2008  Re: refinance should you claim ira [and/or 401(k)]... joetaxpayer 02-05-2008
Posted by Sportsfan on February 5, 2008, 5:46 am This may seem like a dumb question, but I thought I'd ask. I'm planning to refinance soon and my income is good. I also have a considerable amount of money in a plan like a 401 k. It's money I could borrow from in an emergency. Would I list that as an asset when I apply ? Any advice would be appreciated. Thanks, Sportsfan Posted by joetaxpayer on February 5, 2008, 8:35 am Sportsfan wrote: > This may seem like a dumb question, but I thought I'd ask. I'm planning to > refinance soon and my income is good. I also have a considerable amount of > money in a plan like a 401 k. It's money I could borrow from in an > emergency. Would I list that as an asset when I apply ? > Any advice would be appreciated. > Thanks, > Sportsfan No reason not to list it. The bank will consider it in the big picture depending how they look at the numbers. That savings goes towards showing how much you spend and save, but in general, savings counts less than income and current debt obligations. JOE Posted by jIM on February 5, 2008, 9:17 am > This may seem like a dumb question, but I thought I'd ask.  I'm planning to > refinance soon and my income is good. I also have a considerable amount of > money in a plan like a 401 k.   It's money I could borrow from in an > emergency.  Would I list that as an asset when I apply ? >   Any advice would be appreciated. > Thanks, >   Sportsfan My last refinance, the broker told me 401k assets were factored in at 70% (so 70% of my 401k is an asset). I assume the other 30% is the taxes I owe on that money. Posted by Elle on February 5, 2008, 1:27 pm Ask the lender. Meanwhile, a few observations and caveats: A distinction between "asset" and "collateral" seems appropriate here. By law, IRAs may not be used as collateral for a home mortgage. Whether it can be listed as an asset, though, is another matter. I cannot find anything on what the law says about using 401(k)s as collateral. Be cautious with your lender. As you may have read, many lenders have been way too loose in lending standards. Make sure you can afford the terms of your refi-ing. I would trust Usenet (well, with enough input and citations) more than a lender these days to give me the facts on what the law allows re lending standards. Posted by joetaxpayer on February 5, 2008, 1:45 pm Elle wrote: > I cannot find anything on what the law says about using > 401(k)s as collateral. Of course a loan from a 401(k) is secured by the account itself, but a 401(k) may not be pledged as collateral for any other loan. I'm sure a bit of the google will uncover the exact law stating this. JOE Similar Threads Posted refinance /cash out tax implications February 9, 2008, 2:34 pm Rental Property Refinance Tax Deduction February 19, 2007, 5:02 am Is the 529 really necessary for college savings? January 15, 2007, 1:38 pm about 401k Before-Tax savings (or After) April 4, 2007, 4:31 pm savings bonds - EE vs I - July 18, 2008, 1:44 pm savings account August 15, 2008, 5:02 am ING Direct Savings account... September 26, 2006, 3:30 pm Advice on investing and tax savings January 3, 2007, 8:10 am Student Loan or Savings? July 6, 2007, 4:45 pm CDs vs Online Savings Accounts March 1, 2008, 7:38 pm