Pay off mortgage

[Justin Fantazier]

I have a mortgage that has only about 50k left on it. Should I pay this off and free myself from the mortgage and open a HELOC or should I refinance?

[Theresa Harris]

Ask yourself if at 2.9% interest you paid off the mortgage are you further ahead than if you took that $50K and invested it elsewhere? With current interest rates (at least in Canada and guessing the US is similar), you'd be further ahead investing that money elsewhere and continuing to let the tenant pay down the mortgage with their rent. If you want to buy more properties in the near future, use the $50K you have right now rather than taking out a HELOC on the property (which will be at a higher rate than 2.9%).