My husband and I own 2 investment properties as well as our principal residence. We're in the process of refinancing one of them and my question is which debt should I pay down with the money? We have an unsecured line of credit that was used to fund the renovations. Normally the answer would be easy and I would pay that one down, however we use the interest against our income from the property to reduce taxes. So should I use it to pay down the mortgage on our principal residence, since we don't use that interest as a write off? The difference on the two rates is 1.85% if that helps at all.
Refinancing income property - which debt to pay down?
- Thread starter sthyme
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- Aug 30, 2007
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What is the overall goal here ? Own three properties with smaller and smaller debt ? Then yes, pay down the personal residence first.
Or is the goal to maximize wealth ? Then you should consider buying more properties by increasing the mortgages on the two investment properties.
What is your other income ?
What's your 5, 10 or 15 year goal here ?
Or is the goal to maximize wealth ? Then you should consider buying more properties by increasing the mortgages on the two investment properties.
What is your other income ?
What's your 5, 10 or 15 year goal here ?