All, looking for some advice on what to do
Primary - 725K at 2.875%- 30 years -70% LTV
Rental - 215K at 2.5% - 14 years left - 35% LTV
With the state of affairs, it is basically no cash flow on rental with all expenses since it is a 15 yr mortgage. I can deal with it for now. I do hope to acquire another property if Market cools down. I live in SLC and there is not much good priced properties.
Options
1) refinance to 30 year to improve cash flow - rates are around 3.25% and adds around $600 in cashflow
2) Pay lump sum 50K - pay down rental and recast. Recast improves cashflow to around $500
3) Pay lump sum 50K and reduce primary mortgage . Recast improves cashflow to $200
Plan 1 - Execute just #1 and have cash on sidelines for a future property. Improved chances for loan approval
Plan 2 - Execute #2 and repeat each year - in 3-4 years this should be paid off and get around $1700 in cashflow. Improved loan approval chances in future.
Plan 3 - Execute #3 for 2 years and refinance (hopefully lower rate for jumbo then and improved cash flow)
Please offer advice.
