Refinance from 15 to 30 year
I know people often refinance from a 30 year to a 15 if they can get a competitive rate that does not dramatically increase the monthly payment. I am looking at doing the opposite. I bought a property (my first) with a 15 year VA loan. I bought the property before I started seriously educating myself and diving into real estate (a mistake I know). The plan is to keep the house as a rental property. I am moving sooner than expected and do not have a ton of equity in the property. That said, the monthly rent I expect to get will not quite cover the monthly mortgage payments. I am considering refinancing from the 15 year loan to a 30 year loan using a VA Streamline or VA IRRRL. I can lower both my interest rate and my monthly payments in order to achieve positive monthly cash flow. I know I will end up paying more in the long run on interest, but I will also be getting a better return on the investment as opposed to having to cover the difference between the mortgage and the monthly rent brought in. Just looking for other people's thoughts/comments/insights on this use of refinancing.