<prompt> Human: I currently owe 5130 on my car loan at an interest rate of 18 with 29 months remaining on the loan. I also have an emergency fund of 7000 and 15000 in retirement savings. I got the loan when I had no credit history and it has helped with raising it to a 640 Im still working on getting it higher unsure what else I can do to raise it. However I want to buy a home in the next 2 years and want to get rid of the debt but I am unwilling to use my emergency fund. I can however get a loan from my retirement savings for 4200 at an interest rate of 3.5 the remaining balance I will just pay. The money to pay back the loan would be deducted from my twice a month paycheck at 108.17 for a term of 20 months. I have already considered refinancing but I havent found anywhere that would refinance it due to the low amount owed and the miles on the car. Getting rid of the loan will also help me lower my insurance coverage as I currently pay about 180 per month. So I am unsure if this is the right move in the long run. should I continue to just pay my monthly payment or should I do the loan from my 401k ? Any advice is appreciatededit: I currently pay 217 per month for my monthly payment. I normally have about 300 surplus in my budget however I have been saving that ever month. My current emergency fund would only cover about 3 months worth of expenses so my goal is to double that in the next year. I plan on staying at my job for at least another 3 years as they have also paid for my schooling and if I leave I would owe for that also  <response>: Use the EF. Whats it doing for you? Not much. If you have an emergency after paying off your loan and 2K isnt enough to cover it, THEN you can take a loan from your retirement fund.I just think its a really bad mindset to consider your retirement money as assets available for use. 