Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply

User Stats

1
Posts
0
Votes
Charles Liu
0
Votes |
1
Posts

20 Year vs. 30 Year Mortgage?

Charles Liu
Posted

So, I'm looking into my options for purchasing a rental. When it comes to financing I don't know if I should pick a 20 year mortgage or a 30 year mortgage. Everywhere online and on youtube tells me to get the 30 year mortgage because "cash is king," but in my case, the 30 year mortgage will only get about $200 extra dollars a month in cash flow (also people really only compare the 15 vs 30 year mortgages). And the arguments for a 30 year mortgage go on and on, such as flexibility, my money won't be dead money stuck in equity, etc.. However, people close to me that currently invest in rentals have told me to stick with the 20 year mortgage, arguing the extra cash flow really isn't that much, and that I'm closer to reaching the point where the rental has paid off it self and the rent I'm collecting is essentially all net. Any thoughts on this? The rent for the property will also be able to cover either mortgage, I guess it's just a matter of extra cash flow.

Loading replies...