Want to eliminate 401k loan
| Listing Information | |||
|---|---|---|---|
| Amount: | $16,500.00 | Status: | Loan created |
| Grade: | AA | DTI: | 22% |
| Lender Rate: | 10% | Borrower: | chazzman2000 |
| Finished | State: | IA | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Paid | Origination Date: | 2007-02-01 | EricsCC ROI: | 9% |
| Status History | |
|---|---|
| Feb 01, 2007 | Current |
| Jul 24, 2007 | Payoff in progress |
| Jul 28, 2007 | Paid |
|
I will use the loan proceeds to pay off my 401k loan. My employer does not allow extra payments on 401k loans and they take about 30 days to apply my funds to the loan. I called them about this and they sound like they really don't care. I'm wondering where my money is going for the 30 days it takes for their processing! I have 3 years left on my 401k loan and plan to pay it off early (18-24 months at the maximum). The loan was for a down payment on a foreclosed home. I bought this in June 2005 to use as a rental. It has provided a cash flow of a little over $100/mo. I?ve built up an emergency fund from the cash flow (a little over $1,000) for the rental in case any repairs come my way. I've haven't had a big problem so far and any issues I have been able to handle myself. I plan on raising the rent another $25/mo next year as rentals have increased in the area. I work in the IT industry as a business analyst. My wife is a teacher. I have a great credit score and credit history with a pretty good debt/income ratio. For some reason, when I enter my information it says I have a 13% debt/income ration, but by the time it is shown on the loan information it comes up around 23%. Not sure what is up there. I checked my credit report from Experian and I noticed that the payments that I made on some revolving credit has not been noted yet this month. My wife and I have kept excellent credit for a long period of time and we plan to continue to do so in the future. To break down the numbers for the month: Income: $7,177 (my salary, wife?s salary, dependant care reimbursement, and rental income) Expenses: $1,330 ? First and Second Mortgage (should have paid PMI) $688 ? Rental Mortgage $960 ? Daycare $269 ? Car loan $171 ? Revolving Credit Balances $1,700 ? Variable bills (includes budget for gas, electric, water, groceries, etc) * *Wife and I are working to reduce expenses in this category to $1,500/mo by not eating out and buy processed meals. Expense Totals: $5,118 This leaves a little over $2k a month that we plan to pay off our debt. I plan to pay off my smallest debts first and start the so-called ?debt snowball effect?. That would include the revolving debt and car loan. Then pay off this loan within 24 months. I would like to to be debt free (excluding mortgages) within 24 months. I have been a lender for a few loans and I really like the concept of helping other people find loans at a lower rate than what they would find at a bank. Problem is that I believe I was a little premature to start lending. I really needed to focus on paying this debt down. Once I get out of the debt, I plan to move back into lending on Prosper. Thank you, in advance of your bid! Have a great day! |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 88497 | Want to eliminate 401k loan | AA | $17,500 @ 11% | Jan 24, 2007 | Withdrawn |
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