as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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making higher payments on primary residence mortgage or rental?
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pay down the lower balance on the rental property. generally speaking, you are more likely to need/want to sell the rental house as business conditions change or if you need the money for some other purpose. if you pay down your primary residence first, you are building equity, but that equity isn't as liquid as equity in the rental. also, in the us, you cannot deduct the interest on a rental property, so the net interest after taxes that you're paying on the rental narrows the gap between the 4.35% loan and the 5% loan.
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