Mortgage Blog

The following question contributed by a very smart borrower:

Q: I have a primary loan of 135k and the rental with no Loans. Is it better to
refinance my rental house and payoff the primary home?

A: This is a very creative idea. Indeed I think it's beter to have the loan on the rental house for the tax purpose. Since your standard deduction is about the same as the property tax plus interest; if you have the loan on your rental property, you can deduct all the interest on the rental and save more on the tax deduction.

What a smart borrower!!!