SFH Rental - 30 year vs 15 year
I'm trying to decide on a 30 year loan vs a 15 year loan. Purchase price for the home is $150,000. Rent is going to be $1450 a month. The big difference is the rate. Does anyone have any thoughts on this?
30 year
25% down = $37,500
Rate = 4.75%
Monthly payment - $897
Cash to close - $39,000
15 year
25% - $37,500
Rate = 4.125%
Monthly payment - $1149
Cash to closse - $39,000
Most Popular Reply
Maximize your cash flow and do the 30-year. Of course, I say that because my goal is to create cash flow and not get to a paid-off house. When the equity gets high enough, re-leverage, lower the cash flow as a result, but get more assets with the resulting cash in hand...assets that are also pulling in cash. What is your goal?