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Updated over 13 years ago,
Pay Down Strategy with Refinance Dollars
Hi.
I have 4 properties traditionally financed at 6.25%. Each are rented with positive cash-flow. My lowest principal amount owed is 45k.
Since rates are low (< 4%), I was considering refinancing my personal residence with a 50k cash-out. I would then pay-off the 45k on the property mentioned above. My thinking is that I am borrowing money 4% rather than 6.25% with the additional bonus of having one of my rental properties paid off.
Is that wise? Am I thinking correctly?
Thanks.