Windsor, CA asked in Real Estate Law and Tax Law for California

Q: I have two mortgages on two properties in CA. One will soon be used as a rental. Is it better to consolidate the two?

I should refinance both properties now because I can save money with the low interest rates on mortgages. One lender suggested that I consolidate the two loans and pay-off the loan on my future rental property. But I wonder if I will benefit more (because of the tax benefits) if I maintain the loan on my rental property?

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1 Lawyer Answer
Jonathan Purcell
Jonathan Purcell
Answered
  • Tax Law Lawyer
  • PETALUMA, CA
  • Licensed in California

A: I suggest you build a good spreadsheet and analyze and compare individual scenarios as they arise.

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