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Posted in Mortgage
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Question By
Ann7475

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Should I pay off or not?
The scenario:
I have 2 homes.
They are across the street from each other.
Both have the same values / spec’s.
They both appraise for approx. $165,000. ($330,000 combined).

I have a personal savings of approximately $40,000.

Home “A” is my primary residence.
Home “A” has a mortgage of $101,000 with a 15 year APR of %4.375.

Home “B” is my rental property.
Home “B” has a mortgage of $70,000 with a 15 year APR of %3.375

The question…
I would like to purchase a 3rd home. We can refer to this as “Home C”.
It is located in the same complex; same specs/value and will be another rental property.

Which would be the soundest financially solution?

Should I,
A. Simply obtain another mortgage and use my savings as a down payment to purchase home “C”?

B. Refinance home “B” for $150,000 and use the $70-80,000 from the refinance and my savings to pay off the mortgage on home “A”?

C. Or Refinance home “B” for $150,000 and use the obtained monies from the refi and my savings to purchase the new rental property?

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Top Contributor
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How many years are you into the current mortgages?

How much other debt do you have?

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