First Mortgage on a Rental I Have a Few Questions

2 Replies

There are quite a few options out there like 10, 15, and 30 years. I will be using the income from other rentals to pay for this one. My question is is it wise to go for the shorter mortgage then refinance or the longer lower interest option? 

any other advice would be greatly appreciated. 

I would figure out what your goals are and go from there. More cashflow with the longer term and more equity in the relative short term with the shorter term mortgages.

Interest rates are still low so locking those in on a fixed rate is a great advantage with the longer term stuff.

Jordan Moorhead, Real Estate Agent in MN (#40542303)
Originally posted by @Peter G. :

There are quite a few options out there like 10, 15, and 30 years. I will be using the income from other rentals to pay for this one. My question is is it wise to go for the shorter mortgage then refinance or the longer lower interest option? 

any other advice would be greatly appreciated. 

Hey Peter,

I would go with the longer term, and get lower payments.  If I can pay extra every month, then I will do that on my own.  With rates so low... i would not want to put myself in a position to refinance in a few years when rates are prob going to be much higher.    Not all investors have the same philosophy though.  Best of luck.

Adam 

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