Have a rental that at first wasn't my choice to have. It didn't sell planned to sell and use for down payment. Anyway now am keeping it to produce income and help during retirement. Just wondering with taxes is it better to pay off rental 1st or my residence. I had planned to pay my place 1st but i owe 52000 on the rental and 260,000 on my home. I thought if I pay it off in next couple years it will take the stress of having to keep renters in there away. Then it will start to pay down my house with the rent after. In the past I thought pay mine down 1st and refinance it all onto the rental when it gets to be what the rentals worth so that there is no stress of losing my place for the rental. Tee rental is at 2.75% right now it's adjustable mine is at 4.3. What do you all think? Thanks for the feedback.
Logging in...
Pay down rental?
Collapse
X
-
If it were me, I'd probably pay down the rental because it's a smaller loan and you'll be able to pay it off faster, and because it's a variable rate.
Before you pay anything off early, though, save up a hefty reserve of cash in case the house is vacant for a while and in case there are big repairs. You've probably already done that, yes?
After the rental is paid off, I'd use the rent money to pay down your primary house. When you have no mortgage on your primary house, and income coming in from a paid-off rental, I would think you'd be in really good shape for retirement if you are also building up a 401k or Roth balance all this time.
Go you!
-
Comment