I think most financial guys would be totally against the idea of taking out of your 401k to pay off a 2.8% loan and many would argue that you could take your time paying those low-interest rate loans if you were truly putting your money in places where it could grow. If you want great specific advice go to the www.bogleheads.org forum and pose your situation. You'll get 10-20 immediate responses from some financially-savvy guys.