My wife and I own a rental house that we rent to a lovely couple who pays us enough to cover the mortgage with some money left over.
I've saved enough of this extra over time to cover any foreseeable repairs that may arise, and now I would like to start putting that extra into paying down the mortgage principal. My wife disagrees, stating that the mortgage interest deduction is beneficial. My reasoning is that we only write off what we pay in interest (4.5%) so we're losing money even if we recapture some of this loss with the tax benefit.
Should we pay the house off ASAP to stop paying interest, or should we keep paying as scheduled, use the tax benefit, and use the extra rental income for something else like maybe another rental property?
Submitted February 15, 2018 at 12:16PM by KingBooRadley http://ift.tt/2o2jmaJ
