Pro's and Con's to 15 vs 30 yr. refi on personal residence
I recently did a rehab on my personal residence. Instead of selling, I will refinance, get cash out to pay off the refi and put myself in a zero debt position (except for the mortgage) to allow easier lending on investments.
15 yr - pay off home faster, better interest rate, higher fixed payments, 26% debt to income ratio, and increase equity for future HELOC's
30 yr - lower fixed payment, 20% debt to income ratio, higher interest rate, less equity for HELOC later.
Which is better way to finance a personal residence for a new investor trying to finance flips/buy-and-holds for short and long term.
15 yr - saves $ (interest) long-term and allows greater future barrowing through HELOC (which can be barrowed up to 95% and the home will be at 80% after refi).
30 yr - more cash in your pocket now and lower debt to income for future barrowings.
What do you think would be more advantageous for a newbie?