Refinance options for primary and rental properties

[David Y.]

I have a primary residence and a rental with mortgages in the 3% range and I'm looking to take advantage of low refinance rates in the 2% range.

The scenarios I'm going over are:

1) Refinance individually;

2) Refinance primary mortgage with cash out to pay off rental; or

3) Refinance rental with cash out to pay off primary

The lower rates are really appealing However, I'm reading that there might be tax consequences depending on the option I choose.

Has anybody dealt with this issue?

Thanks!