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Reply to "If you took money out of your TSP for a downpayment on a house...."
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[quote=Anonymous]While we are talking opportunity cost to not having money in the tsp, keep in mind too that knowing I can take a loan to myself from my tsp for a home down payment allows me to put whatever I can spare in my tsp. Rather than parking my down payment on Bigger House, which I have not decided yet even to buy, in savings I can dump the money into my tsp where it will hopefully grow. When and if I decide to buy the house I can loan myself the down payment or part of it and pay myself back. If I never buy, all that money I don't spend will have been in my tsp since the beginning. I would never stop my tsp baselin tsp contribution to pay on a tsp loan. It would be additional payments to my mind, the same as a personal loan from a bank or a larger mortgage payment with pmi.[/quote]
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