A little background first, I’m in Southern CA, It’s my primary residence and not my forever home. I currently have a $2050 monthly Mortage which I usually pay $2200. I found a lender at 3.0% for 15 years which would bring it to $2375 monthly. (Which I can afford) Or 30 year at about $1500 or so.
the question is since I do plan on renting out and moving In the next 3-4 years do I go 30 year and bank the extra cash for a rainy day/ future investments. Or pay the loan down in 15 years be free and clear and basically break even on the rent in 4 years.
Thanks you in advance for any and all input!
@John Novu what are your goals? Does the 15 year cash flow? Regardless, personally, I prefer the 30 year as it provides more cash flow and you are not the one paying the higher interest rate anyways. Also, getting more cash flow and having a lower monthly payment will help you borrow more money for the next property (if you are planning on buying another investment property). You can always pay extra monthly to shorten the 30 year loan if you want to go that route - but you cannot lengthen the 15 year loan without refinancing. Just my two cents.
Thank you, I figured the same thing since my primary has always been intended for a rental. And it will cash flow on a 30 year when its time to house hack the next one