Elle wrote:

- quote -

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

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.

On Feb 5, 5:46*am, "Sportsfan" <sportsfan2...[at]verizon.net> wrote:
- quote -

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.

Sportsfan wrote:
- quote -

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

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