30 yr or 15 yr mortgage?

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30 yr or 15 yr mortgage?

Spencer R.
Member since 2018 · 15 posts · 5 votes

Hi,

When does it make more sense to do a 15 year mortgage on a rental property vs. a traditional 30 year mortgage?

Thank you in advance

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Alex P.
Investor · Longview, WA · Member since 2015 · 94 posts · 176 votes
8y
30.
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  • Jason D.
    Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    When your investment goal is less about passive income and more about loan payoff, the 15 year makes more sense.
    0Reply
  • Alex P.
    Investor · Longview, WA · Member since 2015 · 94 posts · 176 votes
    8y
    30.
    1Reply
  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    8y

    Usually people choose a 30 year if that's an option because you can always pay it off in 15 years if you want.

    1Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    8y

    Almost never...although I haven't found a reason yet to do it.

    0Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    8y

    Most of the times, go for the 30 years mortgage. 

    With a 30 yr, you have the option to pay extra to the principal, in order to pay it off faster.

    15 yr, while has a lower interest rate, will have a higher monthly mortgage. But you don't have the option to pay less than your required payments monthly. 

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