Pay Down Strategy with Refinance Dollars

[Jeff L.]

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.

[Lynn S.]

6.25 vs 4.0 % i am sure you will save something , but what will it cost you to refin ? Do the math, depending if you are also holding on to the property or thinking of selling in the near future ????
Depends??