Dear MarketWatch, I have a rental property that’s worth $175,000, and I owe $53,000. My primary home is worth $265,000 and has $108,000 left on the mortgage.
My question is this: Should I sell my rental to pay off my primary and be mortgage free? Or should I refinance my rental — and pull cash to pay off my primary mortgage?‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.
Being debt-free is psychologically so liberating. Plus, after fees or other miscellaneous expenses, you’d still have more than $10,000 left over. “Being a landlord is a lot of work, but the prospect of becoming debt-free brings with it such financial freedom. So go for it — sell that rental, if you think you’d get a good price.”
What's your interest rates on primary and rental? I can't read the article haha
Ask an accountant!
Not good advice whatever is decided, no one knows what’s best is what I got!
No. Keep on trucking bruh.
I would and then I would pull a HELOC against my personal house and invest it
Consider the tax consequences first. If you existing loan is low, why pay off?
When inflation is higher than the interest rate paid on your loan you effectively have a negative interest rates and get paid for your debt. Every month your debt gets smaller in comparison to the amount of money supply. Also rent can quickly increase to meet new expenses. KeepIt
where do you live? I will buy your house.
If your debt is at a reasonable interest rate you should keep the rental property. This is dumb. Not all debt is bad debt