Real Estate and Home Mortgages - Payoff or not

Is it a good idea for someone to pay off the house they are living by selling an investment property that is already paid off? The investment property has income that they need to pay the current mortgage. If the house is paid off, they no longer will have the mortgage payment of $3500 (a good thing – I think) but they will not have a $22k interest that they are paying now and it is helping them for tax purpose for $120K income. The family does not have any other debts.

Much would depend on the current interest rate. Also..could the other property even sell in this market? My thought would be..if the investment is paying the mortgage..then its a break even...as long as the investment property is a stable source of income.

I would think this is a question for a finanicial advisor...who will need much more info than has been given.

Thanks – not sure what the interest rate has to do with it but the loan is 15 year loan 5.875% (they already paid into it for 3 years). The mortgage of $3500 (not including tax or insurance) is almost 50% for principal and interest. By the way, I think if you price any property right - it will sell

If the investment property is paying the lion's share of the mortgage and is stable/secure income - I'm with gunguy. I'm certainly no money expert but I would think building equity in 2 properties is better than 1.

It's true that anything priced right will sell.... but when the market is up, it will sell for more:D

Thanks for your responses. I plan to talk to a financial advisor but I was hoping to be more “prepared” before I talk with one. Posted the same question under “Personal Finance” - the question was there for a day or so and then it was gone. Maybe the admin delete it? I wonder why? Thanks anyway

If it was a duplicate post, it would have been deleted. If both identical posts are responded to - the 2 threads are merged. Helps to keep the forums neat and takes up less space in the site:thumbup: