30 yr or 15 yr mortgage?

Question

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

Nicole A. · Answer

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

Chris T. · Answer

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.

Joe Villeneuve · Answer

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

30 yr or 15 yr mortgage?

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