Should I keep a mortgage on a rental property while extracting money from the rent to pay down the mortgage on my primary residence?

Should I keep a mortgage on a rental property while extracting money from the rent to pay down the mortgage on my primary residence?
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#1

I’m 37, just married and planning to buy a house to live in for a long time. I have a rental property that I’ve owned for 11 years and will be paid off within 6 at the current rate I’m paying.

My question is whether it’s smarter to keep the mortgage on that rental property so that the profit (rent income minus mortgage payments) is lower, and thus taxes are lower, while paying down my primary mortgage with the proceeds.


#2

Presuming you will have enough deductions to itemize in either case it won’t matter. If you will only be taking standard deduction for yourself then continue to pay mortgage interest on the rental.


#3

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