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Updated almost 8 years ago, 02/23/2017

User Stats

56
Posts
23
Votes
John Woodington
  • Brooklyn Park, MN
23
Votes |
56
Posts

Worth Losing Money to Keep an Awesome Mortgage?

John Woodington
  • Brooklyn Park, MN
Posted

I'm considering buying a new home and keeping my current house as a rental property. Last year I re-financed this current property into a 15 year fixed rate mortgage at 2.875%, which I love. Monthly expenses (PITI) are currently $1550. I know I can rent this house out for ~$1450. Obviously this means I will lose about $100 per month if I change nothing. But if I refi out to a new 30-year note, I can only save about $200 a month in P&I. This would allow me to cashflow (barely), but I would then lose the super low interest rate of my current 15-year mortgage. My gut tells me to keep the 15-year mortgage and try to fully pay off the property as fast as possible rather than refi out to a new 30-year mortgage so I can cashflow $100/month. In essence I feel like the loss of cashflow is worth the much faster equity I'm building in the property. Curious what other would do in this situation.

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