Analyze Before You Refi Or Buy
I just completed an analysis for one of our clients. They had just moved to the southeast and were currently renting. They had converted their west coast home in to a investment rental. They wanted to know the best way to fund their new home in their new area while keeping both their personal and rental mortgage over head low. After analyzing their new situation within the new tax code, I was able to demonstrate how a personal mortgage would not benefit their personal tax situation as they would barely exceed the new higher standard deductions. Taking the most mortgage on their business property made the most sense as it would be fully deductible. Even though their rental mortgage was higher than they thought they wanted, their total mortgage costs, particularly on an after tax basis were much lower.
We also discussed taking out a Home Equity Line of Credit simultaneous with them buying their new home. This would let them access their equity in the new home to take advantage of great real estate deals in the future. Of course, this isn't right for everyone. This young couple had very high credit scores and showed a remarkable amount of discipline in their budgeting and saving.
Analyze before you refi, buy or take money out of your retirement accounts!