Main residency and rental home, refinance?

You would get a better rate if you refinanced your primary residence and used it to pay off the mortgage on your rental. It would improve your rental's cash flow as well. You sould be able to write off the mortgage interest on your taxes. As always, consult your CPA.I would look at a conventional loan for the refiance since your loan to value is low.If you want me to take a more detailed look, my website is https:www.rogerhowell.com or call me at 208-861-7579.Thanks and have a great day.

Good Morning - Like my colleague Suzi stated, there are several advantages to refinancing your primary residence to payoff your rental. Just remember to consult with your CPA so that you can make sure (depending on your tax bracket) that you are getting the most out of your write offs no matter which way you go. Primary residence interest rates are almost ALWAYS lower than investment property rates so your monthly mortgage payment will be a place where you see a savings.If you decide to take advantage of the lower rates, Evergreen Home Loans is a lender you can count on. We are very competitive and serve all of Idaho.Happy Halloween,Jessika

As it currently stands, 100% of the interest expense you are incurring on the mortgage for the rental property is an expense of the rental property when you (or your accountant) report the income for tax purposes. If you refinance the rental mortgage, this will continue. The interest rate on a loan for rental property is always higher. If you refinance your primary residence and use the proceeds to pay off the mortgage on the rental property, the interest rate will most likely be much lower, but the interest expense is deductable against your regular income only if you itemize your deductions when you file your taxes. (See IRS Publication 535) If you are currently itemizing your deductions, and expect to in the future, then this would most likely not impact your tax position. If you are currently taking the standard deduction, and expect to in the future, you are effectively eliminating the use of the interest as an expense against your rental income. Your CPA can help you with the calculations to see which makes the most sense in your situation.