Need advice on rental refinance
Currently have a $40K balance on a rental condo at 6.74% with 13 years remaining on 15 year loan. Thinking of taking the Penfed 5 year home equity loan at 3.99 % to payoff the condo, and try to payoff the loan in 2 years. Is this wise? Most of our retirement money (90%) is in 401K/IRA rollover accounts. Should we just save the money as a cushion?
The monthly loan payment now is approx. $500.00. We hope to retire in 2 -3 years and were trying to reduce loans. The home mortgage balance is $93K with a monthly payment of $462.00 at 3.85%. No other debts.
We would welcome your thoughts on what to do.