Refi half way through loan??

[Chad Reynoso]

Hi Fellow BP members. I’ve got a couple questions regarding my multi-family property in CA. I have roughly 13-14 years left on my original loan and with todays interests rates and dramatic property value increase I am thinking about refinancing and taking some cash out. Question is do I do a 15, 20 or 30 year loan and what makes the most sense. Wife wants to pay it off so we are free and clear for cash flow income, which comes with a 100k plus increased monthly payment over what we currently have or is it a better option to take a 30 year loan at lower interest and lower payment than we currently have. It’s about a 1200-1500 monthly difference between cash flow and new payment. We ultimately will be living off the income the property generates down the road. Need some advice and the pros and cons of paying off the property or extending the loan. Any input or shared experience would be helpful.

Thank you

[Chad Reynoso]

I’m 42 and plan to move out of California.  Planning to buy an out of state house to rent before we make the move. In order to that I will certainly need some cash out so therefore which term loan makes the most sense? 15 or 20yr at a higher rate and payment or a lower interest and lower payment 30yr. In your opinion?