My drivers were two fold (1) reduce interest rate from the current one. Unfortunately that is possible only if I get jumbo loan at 1M based on what my mortgage broker told me. (2) consolidate other loans.
Based on the information provided by you in this forum, (2) above won’t work, as the interest beyond my original loan won’t be qualified interest for deduction.
So I am thinking I will get 1M loan to get better interest rate, and payoff 700k right away. (No prepayment penalty). This way I am still within the original 300k loan. That should be fully deductible on my schedule E. Do you see any issues with this approach?
Thank you.
