I am moving to a new city for work and buying a new house. I already know that I will have just enough money in savings and proceeds from the sale of my current home to make a 20% down payment on the new home, but it will completely wipe out my savings. I am considering taking out a 401k loan of around 20k to substitute some of my down payment funds and instead keep those in savings. The reason I'm considering doing this now is the 401k plan repayment for loans applied to down payments allows for a much longer repayment term. I make a good salary and shouldn't have any issue paying back the 401k loan and the mortgage payments, and if anything did go wrong (job change, etc) I could always pay back the 401k loan from savings, which would hopefully have grown some in the meantime.

Does this seem like a good or terrible idea? I am on the fence about it for now and trying to make certain I know all the implications of taking the loan out.