I am interested in knowing how folks may approach our scenario.
The raging bull market appears to have some headwinds, finally. Thus, I am seeking to deleverage/shift some cash and existing VNQ holdings toward knocking out $224K remaining on our sole rental property. It will cash flow around $18,800/year after expenses, if fully paid. Interest rate is 4.49%.
Our primary home is financed at 3.875% and carries an annual $26,172 payment. Our monthly obligation given the offset is $614, excluding insurance, taxes and HOA. $1,556 is our obligation with expenses included. From an emotional standpoint (and a complete guess on the direction of the market ... i.e. "lower") this seems to be the best play.
Would you make this move or, instead, recast the monthly mortgage payment on the primary from $2181 to $1128 with $224K toward the primary?
For what it's worth: both homes were purchased in the last year and a half. The rental was our downsize, on which we underestimated our needs. The new home is where we are staying put.
