Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
For Mortgages, including Primary Residence and Rentals, Do you choose 10, 15, 20, or 30 year terms and why? We tend to go fewer years, with the mind to pay down principal faster and so far all are buy and hold, with a couple paid off. What is the benefit of going 30 year terms? I have heard some say to never pay off mortgage, to leverage refinance for more properties to save on taxes, but the cost to refi is not free either.
Always! 30 and you can always pay extra to pay off sooner.
You can’t pay less if you do shorter periods unless you refinance. $$
So always do 30 and if you want to pay off in 15 you have the option. just amortize it’s over 15 years and pay that amount.
this way you are hedging yourself a little against things that might happen if you ever can’t afford that higher 15 year payment. I really can’t see any argument to do it over a shorter period especially at these low rates. Longer periods and pay more = shorter payoff is the easiest way and you have options. You don’t have options the other way around.
The last refinance I did was with rocket mortgage. they have a wonderful dashboard that shows how much interest and principle have been paid. I saved 67k by paying off the heloc as fast as possible. To me that was the driving force.