Refinance from 15 years loan to 30 years

[Aischa B.]

Hi BP!

I am thinking of refinancing one of my rental property ( currently own 3) Need your help to decide if I should stay at 15 years or go for 30 years. My goal is to eventually pay it off and buy 4th house (owner occupied) this year.

Current mortgage (last refi Jan 2013)

$132,000, 3.12%, 15 years loan, $1625 monthly Rented $2,000 (market value $395,000)

I've already called a local bank. For 15 years, rate is 3.75%, and 4% for 30 years.  Closing cost is about $4,000. 

What do you guys think? Would like to hear your input.

[Jess Aranda]

I know how your feeling Aischa  I had the same thoughts too when I refinance my house to 15 years before bigger pocket. I am now having second thought about that decision now that I intend to buy more rental properties that will cash flow for me over the long run. But if you think about it. 1000 dollars amount and you said you will cash flow better. That means less time at work and more time for your investment. You dont have to sell your house you can always make your house another rental in the future. Everytime I buy my house I always looks at it as another rental in the future. And if you decided to buy another property that extra cash flow will sure com in handy. Rates are really low right now. I need to find a great mortgage broker see what they can do about my mortgage.