15yr @ 80% LTV or 30yr @ 70%?
I've come to the refinance stage of my BRRRR duplex in San Antonio and am looking at options. A conventional FNMA loan is running 70%LTV with a 30 year am at about 4.625%. I can also get, from a local bank, a 15yr am at 80% LTV with 3.375%.
That 10% difference in LTV is $22k on a $220k property. So I would be able to take out $22k more in cash with the 15 year loan.
Payments on 15yr are $1,247 for the $176k loan vs. $792 on the 70% 30 yr, or $455 per month less. That means I recover the $22k in cash after 48 months, but with a whole lot more equity in the 15 yr loan.
Lots of searching in BP shows that 30yr is preferable given my situation, and I agree, but when looking at different LTVs, I am conflicted as I could put that extra $22k to work now.
What would you do? Both options cash flow, $100 vs $325 per door.
Thanks,
Ross