Help with choosing the right mortgage loan

5 Replies

For 30 years I am getting around 4.5 (P+I)  with a return of +$300/month

For 15 years I am getting around 4 %( P+I) with a return of +$50/month

For 10 years I am getting around 4% (P +I) with a return of -$219/month

I was planning to go with 15/10 years so I can make some money after the 10th or 15th year. Not sure if this a correct approach though.

@Hemanth Tammareddi

I like 15 year loans so they’ll all be paid off when I’m retired. I currently have eight 15 year loans with interest rates from 3.25%-3.875% with one point paid for the loan with my credit union. I would go for a little cash flow with 15s vs 10 year loans. I try and cash flow at least $200-$300/door which doesn’t include cap ex or vacancies.

I also have two paid off SFRs to help make sure I cash flow every month or at least break even when major things come up. Good luck to whatever you decide!

@Hemanth Tammareddi

Ship around more for better mortgage terms. You should generally get under 4% for 30 year fixed with 20% down, unless there are other negatives on your credit report or other contributing factors like DTI

Always go with the longest term possible with all else being the same. In your case, no reason to go with 10. You might as well get the 15 and pay it down faster if you want. You then have the flexibility to stretch out payments if the situation changes.

With that in mind, I would probably pay the extra half point to get a longer payoff period, but that’s up to you and your goals.