combine rental and primary mortgages into one

[Roy Mitle]

I have a primary home and rental. I have paid off most of primary home so broker is not able to do re-fi (~212K) at lower rate with no point no fee loan. I have a large mortgage (~370K) on my rental but the re-fi rates on rental are bad.

My broker suggested this...

You can combine 2 loans to one loan and tie to primary property. Keep closing paper to show the cash amount amount it to payoff rental property. The portion of cash out amount can be applied to rental interest expense.

Does this make sense. Are there tax implications of such a thing.