The 401k money goes to me, then i pay the seller, so it will be in my name with no debt tied to it. I will still have to pay the loan back (it automatically comes out of my paycheck) but it isn't in any way connected to the house. So yes, I will still owe money for five years. Think of it as a personal loan, where they don't care what you spend it on, it's your money, do as you please. But I can go to the bank and get a home equity line of credit for the things the house needs, a couple appliances, some window trim and a few minor repairs. After that I can bank my money and I will be very comfortable financially. The gains for exceed the losses.
