You’d be getting rid of interest paid to a third party, and converting that to a higher rate of interest paid to yourself. I don’t see it as being as consequential as pulling it all out to pay down debt. Unless you have to default, that is. Even then, the consequence is no worse than what would be experienced from pulling it all out, unless I’m overlooking something.
That is true. If, heaven forbid, I lose my job though, doesn't the 401k loan come due immediately?