i have a question on Mortgage interest

[blueshirt]

If Mortgage interest for investment property is tax deductible then why would one care to buy low interest loan or payoff loan earlier. technically not having a mortgage on investment property gives no benefit.

 

[steaky]

If you sell the investment for instance, you would have to payoff the loan earlier to clear the title.

 

[arunsgirl]

Steaky, you'd want low interest rate so that your payments are smaller. You can only deduct the interest portion of the mortgage payment not the part the goes towards the principal. And you're right, technically it's a bad idea to pay it off sooner, unless you need cash.

Blueshirt, mortgage can be transferable to a different property if you sell, but read the rules closely.