30 year vs 20 year mortgage

[John Dunn]

Does anyone finance their properties with a 20 year residential mortgage?  My long term goal is to go free and clear.  I would rather own fewer debt free properties than a larger highly leveraged portfolio.

I earn enough from my w-2 job (that I don't plan leaving anytime soon) to finance future deals.  Current cash flow from properties isn't needed to help fund growth.  This has brought the idea of a 20 year mortgage to the front of mind as compared to making extra mortgage payments since the rate would be lower (especially with current rates that show little sign of coming down anytime soon).  If a 20 year mortgage would result in a deal going cash flow negative because of the higher payments, I would stick with a 30 year mortgage while making extra payments.

[Chris Seveney]

I did a 15 year on an investment property - most will say do 30 and pay extra, its really a personal decision - if you are financially healthy and have very little risk with the extra payment you get a lower rate so go 20 years, but just recognize that equity is typically trapped in the property.