Primary Residence: Remaining Principal: $100k
Purchasing an Investment Property that requires Non-Warrantable Loan: Loan Amount $240k
Primary Residence Appraisal Value: $500k
Option 1: Cash out refinance on primary residence and use excess cash to purchase investment property condominium
Option 2: Take out a new mortgage (non-warrantable loan) for the investment property
The interest rate of a cash out refinance is lower than if I were to take a new mortgage for the investment property, but am I missing out on any tax write-offs by adding the investment loan to my current primary residence loan? Am I still able to write off all loan origination/closing costs, etc.? What option should I do? What am I giving up, if anything?
Thanks!
