Keeping debt vs paying off

[Patrick Nolan]

I'm at a crossroads in a HCOL (Long Island) and need some feedback. I started by house-hacking my first home that's a two family located in a prime downtown. We owe about $350k with under 20 years left to go at 4.25 and still paying pmi of $355/mo and a current value of about $750k. I moved out of this property with my family to a single fam that we thought would be our forever home but now we are considering one more move. Mortgage balance on that is about $440k with a value of about $800k and nearly 30 years to go on that mortgage with a rate of 3.125. Lastly, I bought a 3 fam in January of this year for $400k in cash and put another $100k into it, intending on this being my first BRRR. (Appraised value will hopefully come in at $650k and the rate I can expect is in the high 4's)

I’ve been talking with two different mortgage bankers and one has advised me to refi out the two fam back to 30 years in order to drop the pmi and increase cash flow and make my application stronger for the 3 fam and for applications for financing on more properties to come. My goal is to run these assets in retirement for income and I don’t plan on selling anything, ever. It goes against my instincts to push the debt out that far when I’ve already got ten years done.

Separately, my wife and I both have w-2 jobs that combine to about $200k/year and we have no problem signing for mortgages with personal recourse.