Payoff Rentals by Refinancing Primary
I'm trying to decide the best strategy. I am looking for cash flow, but also what makes the most sense. I currently have several different mortgages (most of them are 10 year term with a rate around 4.5%) and a primary mortgage at 3.35%. With the current market conditions, I have enough equity and can refinance my home for 2.85% while using extra the funds to pay off my rentals. This would generate about $2,000 monthly positive cash flow (I realize this resets my terms and back at a 30 year mortgage).
I checked with some other lenders for my rentals and they can only offer me a 5 year fixed term that can be renewed or a 30 year term at 4.95%.
What are your thoughts?