Refi for Rental/Primary home and Investment advice

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honeymoney
Posts: 9
Joined: Thu May 17, 2018 4:14 pm

Refi for Rental/Primary home and Investment advice

Post by honeymoney » Tue Oct 08, 2019 7:23 pm

Hello,

With concern of recession ahead we are unsure how to best prepare ourselves for the days ahead.
We recently moved for a job and we were unable to sell our previous home prior to purchasing our new home. Probably a bad decision- but we can't change that now so we have to move forward with better decisions. Our original plan was to sell our first home and put that money down on the new home. Instead we ended up renting that home out.

Current situation:
New Home(for the last year):
Mortgage Balance: 494k
Est. Value: 525k
Rate: 4.5% 30 year fixed
Currently have PMI about $110 a month.

Previous home- now rental:
Mortgage Balance: 195k
Est. Value: 307k
Rate 4.5% 30 year fixed
Monthly Rental rate: $2100
Current p/i/taxes+condo fee= (1717.85+136)= $1853

Current investments:
his:
ira- 190k
401k- 20k

her 403b: 120k

joint investment acct: 120k
HSA: 10k

kid 1 college: 5k
kid 2 college: 5k

we both max our retirement contributions.

We want to increase our net worth, and while retiring early is not a must, we want to make sure we optimize our finances to plan for the future with a nest egg that allows us lots of travel and living the good life haha.

Thanks!

chevca
Posts: 2790
Joined: Wed Jul 26, 2017 11:22 am

Re: Refi for Rental/Primary home and Investment advice

Post by chevca » Tue Oct 08, 2019 7:33 pm

You can probably get about a percentage point lower by refinancing the primary mortgage. I'd do that.

You have over $100k in equity in the rental. Why couldn't you sell it before? I'd sell that as soon as you can. But, that's just me... no interest in being a landlord. But, you could refinance that one, probably lower the payment some, and increase monthly cash flow a little there. On the other hand, you get to deduct all the interest you pay on that one, so...

surfstar
Posts: 1795
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: Refi for Rental/Primary home and Investment advice

Post by surfstar » Tue Oct 08, 2019 7:37 pm

^ditto

sell first home, refi for lower rate and get rid of PMI on current home

gr7070
Posts: 402
Joined: Fri Oct 28, 2011 10:39 am

Re: Refi for Rental/Primary home and Investment advice

Post by gr7070 » Tue Oct 08, 2019 8:01 pm

I haven't looked in some time, but I doubt they lower the interest rate on a rental's mortgage.

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