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Reply to "TSP Residential Loans"
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[quote=Anonymous][quote]Thanks for putting it in context - I hadn't thought about that, it's not just "free money" at the low interest rate, it's actually expensive money (14% return lost + the low interest rate) [/quote] Right, but don't expect 14% per year for the life of the loan. The market will go down, too, and you will be buying back in with each repayment. Also, you would be spending the loan proceeds on an appreciating asset (presumably, over a long period of time). That is not the same thing as borrowing from retirement for a new car or a vacation. The house will be worth something to someone when you're old and grey. [/quote]
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