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Updated over 3 years ago, 04/07/2021
15-year fixed rate vs. 30 year fixed rate when trying to expand
I bought my first home in August 2020 and took out a loan of $450,000 with a 2.5% interest rate over a fixed 30-year period. Not surprisingly, most of my monthly payments are going towards interest with the 30-year fixed loan. My question is: should I switch to a 15-year fixed loan and put more money towards my mortgage on my current property so that I am paying more on the principle rather than interest or should I continue with the 30-year fixed rate so that although I'd pay more in the long run, I am paying a lower price each month, allowing me to save up to purchase a property to rent out and make a profit off that?
I am open to the idea of investors so that I can grow more quickly, but I would definitely need to purchase my first investment property and prove that I can be successful before finding investors. My end goal is to do long-term furnished housing in cities.
Any help would be appreciated. Thanks!