[USER]

I have 3 mortgages:
Primary: 1.2M at 2.25%. Rentals: 460K at 3.35%, and 270K at 3.65%. All are 30 year fixed.

Wonder if I should pay off the rental mortgages so its rent can pay for the mortgage of the primary when I retire in 3 years?

Or should I sold the rentals and pay off the primary mortgage?

[Joseph]

I don’t own rentals but I do know about business expenses. I would assume the rental mortgages are a business expense and your home mortgage is not.

[Christine]

What are your current life priorities? Are these additional rentals your primary source of income or not necessary?
So much not said here

[Scott]

Depends what your goal is and if you want to keep the rentals. I’m gunna get some hate for it but I’d say pay off the rentals and roll the rents into your own mortgage.

[Mindi]

I would keep the rentals but not pay them off. Instead put the funds in the stock market and get 8-10%, it makes the payment for you plus extra leftover.

[Robert]

Keep ALL the rentals. Mortgages at the rates you are talking about are basically free money.

Once the mortgages are paid off, you (and your heirs) will have a stream of income that you cannot outlive.

Making money in residential real estate is not a matter of years, it’s a matter of DECADES.

[Robert]

I wouldn’t pay rental mortgage off early when the interest is a deductible expense.

[Rungnapa]

If I were you I would not payoff low interest mortgage. If you invest your money in S&P 500 you could earn around 7-10% per year on average.

[Scott]

No. I retired 10 years ago. I have the exact same mortgages. Play the spread

[Cindy]

I’d focus on paying off the 270k first. It would be nice to get rid of one of the mortgages and using the income to pay for the other two.

[Billy]

I would not retire until all your mortgages are paid off. Too much risk to have debt in retirement.

Sell off to pay primary is your best option live a peaceful, stress free life.

Interest rate is not your problem…. it’s the debt associated with it. Later you can save up and pay cash for rentals.

I would also consider doing something on the side to make money.

56 seems young to retire. Create new goals….

have a new purpose and mission to drive you to hit new challenges that keep you sharp in mind and spirit.

[Barbara]

Personally, I would be freaking out if I were retiring in 3 years and had 3 mortgages totaling $2,000,000 regardless of the interest rate!!!

[Chelsea]

If it were me, I would put 100% of the profits towards the balance for the next 3 years and try to knock out at least the $270k one.

The mortgage rates are incredible and yes, there are other investments that would bring more money, but the peace of mind of having less debt, IMO, is amazing.

This is a pretty personal question. My answer is ‘wrong’ in terms of getting the most growth out of your money. Not sure if that’s what you want to do.

If you do not go this route, I wouldn’t rec putting it in the stock market for short term money that you’ll need. We’ve seen incredible growth the last few years, but nothing is guaranteed.

Will you be living off of rental income in retirement, or is it a mix of rentals/investments/pension/other?

[Author]

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