Refinance my rental? need advice
long story short...I rented out my 1st home when i bought my 2nd home last year...The 1st home is the rental.
1st home - $49500 balance owed 5.375% -5 years remaining on loan ( i rent this property out $1500 per month and it basically covers the mortgage and HOA fees) im not making any money off of it yet just breakeven
2nd home - $200000 owed 4.50% 29 years remaining. Mortgage is about $1600 all in escrowed.
my initial though thought was in 5 years when 1st home is completely paid off use that rental income to pay my 2nd home mortgage...Essentially giving me no mortgage payment for 2nd house..but i have to wait 5 yrs for this to happen
is there any reason i should refinance 1st home now? more money in my pocket? am i losing money but not refinancing? or is my thinking good on what i was planning in the beginning..
im not up to speed on refinancing so need some input