15 vs 30 year loans

[Jason Bruning]

Hey BP Family, I am contemplating a 15 vs 30 year mortgage on my first investment property. The difference in the mortgage payment is a few hundred dollars but saves me a lot of money in interest over the additional time frame. However, I am interested in what each of you is doing or has done with this same conundrum. Let me know your thoughts. Thanks Jason

[Neal Collins]

You’ll get different opinions on this but most people fail to factor in the Time Value of Money when opting for a shorter amortized term. Since you will most likely will not be holding the property over the entire 15 to 30 years, I would opt for higher cash flow with a fixed loan constant where I know that if I did hold onto the property long long term my mortgage payment would be in 2018 dollars, not 2038 dollars.