Which property to refinance?
Terry, I would like to take advantage of the existing mortgage rates and refinance. I have a home mortgage at 4.625 with $100K remaining (value of home is >$1M). I also have a rental property at an annual adjustable rate of 4.5% with $139K remaining (value of home is $425K). I’m considering refinancing one of them and doing a cash out refinance to pay off the other property. My gut tells me to refinance the rental and pay off my home. What are your thoughts?
Terry Says
No, no, no. Refinance your own home. You’ll get a lower rate. Then refinance the rental property. You might as well lock in today’s low rates if you’re planning to keep that property for a while. Your cash flow will benefit on all counts!
