I need help in deciding whether one mortgage payoff is more advantageous over another:
I have two mortgages, each for the same amount. One is on a primary residence and the other is on an investment property (rental). I expect to come into enough cash to pay one of them off but I'm unsure as to whether paying the rental off would be better than paying off the primary residence? Both rates are close; within 1/4 of a percent.
Are there tax advantages to holding one over the other? I currently deduct interest paid on my primary residence and interest as a business expense on the rental. I'm wondering whether, if I pay off the rental and give up the interest expense, there by generating "more profit", if I wouldn't be losing ground somehow?
I plan to aggressively payoff the second mortgage with the increased cash flow generated by the first payoff, in order to prepare for FIRE launch in 2017.
Maybe one of you nice folks can help steer me straight.
thanks in advance.