Should I refinance my home from 15yr to 30?

Question

We have a nice home that has appreciated significantly. We bought it a few years ago with a 15 year note. We own 2 duplexes that cashflow well. I am the primary bread winner, my wife wants to quit her job and be a full time realtor. The monthly payment is hefty, but we can swing it. My question is, should we refinance the 15 year to a 30 year? the payment would then equal our cashflow from our investment properties. And we could then use the extra cash to buy additional properties.

Or do we keep the 15 year note and keep on the current pace? We would have to really tighten our belt if my wife quits her job and she starts making some sales as a realtor.

Thoughts?

Or do we keep the 15 year note and keep on the current pace? We would have to really tighten our belt if my wife quits her job and she starts making some sales as a realtor.

Thoughts?

Account Closed · Answer

20% of real estate agents do 80% of the sales - the rest are real estate agent in name only - they neither ever list a property nor have buyers - real estate agents are sales people and have to have strong sales skills to survive - sales skills can be learned but are not taught through taking the real estate examine nor by they typical broker. Agents are on their own to learn the skills and to meet lots and lots of people before they get their first sale. That is why most real estate agents can't buy a loaf of bread from the commissions they (don't) earn in a given year. Most agents work a lot of nights and weekends because that's when buyers are available. 90% of people look online at houses first, then when they see something they like they contact an agent. Usually it's a random agent that has advertised on the site they saw the property listed.

It usually takes 6 months to the first paycheck if the agent is a go-getter, has learned how to sell and can find a client to represent and a house they can buy and are the successful bidder.

That's the reality.

A lot of the answer to your question depends on your wife and your market.

Here are the stats:

NAR (Natl Assoc of Realtors) states that the average agent with 8 years experince had a median GROSS income of $49,700 - that does not account for the typical $2,000 a month in advertising and expences - divide the net $25,700 by the average 35 hours a week (1,820 hours a year) means making about $14.12 per hour. No medical, retirement or other benefits included. NAR says they have 1,504,474 members. It appears there are 1,282 agents in Maine.

https://www.nar.realtor/resear...

Will your wife be a superstar? Of course she will, she is your wife. Will she have a great time. Depends on her.  Is it worth extending your mortgage an additional 15 years adding $250,000 in debt to your family?, only you and your wife can decide. (I wouldn't go that direction.)

Have her get her license, try being an agent for 6 months on the weekends and evenings, keeping her current job, and see if she even likes being an agent. It is a small price to pay compared to your original cost benefit analysis.