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Updated about 7 years ago on . Most recent reply

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Venkat Na
  • Buffalo Grove, IL
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Loan on Rental property to pay primary home loan

Venkat Na
  • Buffalo Grove, IL
Posted

I currently have a loan on my primary home. And I also own a rental property with no loan. Now that standard deduction limits are changed in new tax law, I may not be able to use 'mortgage deduction' on primary home as it is less than standard deduction. Since I am sitting on equity on rental property, wondering if I should take a loan on rental property and use that money to pay off primary home loan. Any thoughts if this is a good idea? I am assuming that the interest paid on rental property loan will be bring down by taxable income on rental.

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