I'm looking at buying a second home to live in and keeping the existing one to rent. For tax purposes I'd like to crank the mortgage on the rental (exising house) up so I can write off more interest and use the equity to use on the new primary residence. I was reading somewhere one way to do it is to gift the house to your spouse then buy it from them for full price thus cranking the mortgage up. Is that fully legal?
2nd question) Can I redo my mortgage when it comes due for say 80% of the value putting a chunk of money in my pocket? Will a bank do this? Eventually that money would be for the new house down payment.
If the bank will do this is there a certain amount of time I have to primarily live in the soon to be rental house and make mortgage payments before I could buy the new house?
2nd question) Can I redo my mortgage when it comes due for say 80% of the value putting a chunk of money in my pocket? Will a bank do this? Eventually that money would be for the new house down payment.
If the bank will do this is there a certain amount of time I have to primarily live in the soon to be rental house and make mortgage payments before I could buy the new house?