Is it still make sense to payoff primary after cashout refi

[Leo Grinberg]

So I'm wondering if it still makes sense to pay off the primary mortgage when I don't do itemized deduction anyway.

I refinanced my rental with cash out because I couldn't get anybody willing to refinance principal under $150k($135k to exact) or the interest would be too high. By taking $100k out I moved from 5% 30 years to 3% 15 years on rental. My principal on primary is under $100k at 3.25% and the same thing, nobody really wants to refi it. I understand that I can't deduct full interest on the new $235k loan but if I payoff primary I would lower my real estate payment by $700 per month. That includes my primary and rental I did some remodeling in the same rental replacing kitchens. I believe I would still be able to deduct interest based on $135K.

The rental is a duplex. I don't think it makes any difference.

Does it still make sense in my case? At least in my opinion I'm not losing anything.

Thanks in advance.