Updated almost 9 years ago on . Most recent reply
- Rental Property Investor
- Palm Beach County, FL
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15yrs vs 30yrs Mortgage
Hi everyone,
Can anyone tell me if there is a tax benefit for going with a 15yr mortage vs a 30yr? I am in the market for my first investment property and I came across a seller that is getting rid of his portfolio. I have a P&S signed for two of his 4-family properties and was thinking of putting them into a 15yr mortgage. None of these homes will be owner occupied. This is strictly for investment. Any guidance would be helpful.
Thanks
Tarcizio
Most Popular Reply
@Tarcizio Goncalves I have yet to hear of a valid reason why a 15 year mortgage is worth getting. You can overpay a 30 and make it 15, but you can't underpay a 15 and make it a 30 if the market goes south. You increase your DTI with 15 and reduce your cash flow. I don't see any bonus unless you are specifically looking to only own very few rentals with no debt, which is not something I would recommend as it reduces your ROI considerably.