Worth it to pay double and have mortgage paid off in 15 years, or ride out the 30 years

[Matt M.]

Is it wiser to ride out the 30 years... or should I double-pay and be ready to make more profits in the 15years?

[Jon Holdman]

You don't have to pay anywhere near double to shorten the payoff period from 30 years to 15. Consider a $100,000 loan at 4%. At 30 years, the P&I is $477.42. At 15 years, its $739.69. The difference is $262.27 a month. If you taxes and insurance were $125, your total payments would be about $600 vs. $850, much less than double. If you did double the P&I portion, you would pay off your 30 year loan in about 11 years.

OTOH, $262 may be more than your rental produces in cash flow (after considering all expenses, not just taxes and insurance.) So, if you plan is to use the cash flow for some other purpose, shortening the loan term will prevent you from doing that plan. If your plan is to pay off the property ASAP, even if you have to be kicking in some of your own cash, this might the right choice.