It depends on what your other investments are. Generally, primary residences get better interest rates than investment properties. If you are able to make better returns outside the house than what you are paying to have your PR mortgaged out, then keep the loan. If you cannot, pay it off. With rates where they are, it's hard not to make better returns elsewhere so many people choose to keep their properties leveraged out.
Lender · Yakima, WA · Member since 2015 · 21 posts · 5 votes
10y
If it were me....I'd take the money you're planning to use and use the BRRRR strategy. then you're increasing your net worth while creating long term wealth.
It depends on what your other investments are. Generally, primary residences get better interest rates than investment properties. If you are able to make better returns outside the house than what you are paying to have your PR mortgaged out, then keep the loan. If you cannot, pay it off. With rates where they are, it's hard not to make better returns elsewhere so many people choose to keep their properties leveraged out.
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
Savvy investors will tell you always keep a loan on it to maximize the home mortgage deduction and just keep cashing out the equity over the years as you pay it down every month.Use the equity cash out money to put down payments on more rental properties.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
Unless your primary is high dollar, maybe 1M+ with a large mortgage, the tax deductions are worthless. If that is your only motivation I would say pay it off and save the money.