I would definitely check with your employer and tax consultant about dipping into your 401k. You may have benefits to doing that - and you need to factor in what the borrowing rate against the 401k will be (or tax liability)
you may want to look into getting rid of that consumer debt with something like credit debt settlement. I can refer you to some companies if you'd like. I'd also encourage you to look into loan modification on the mortgage since clearly you are having a hard time paying the mortgage.
Refi and Low Appraisal Question
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