ROI and ROE on 15 and 30 Year Mortgages

[Joseph S.]

We are currently running numbers on what the best return would be on a mortgage in today's market. Our plan is to pay off the mortgage with all of the extra cash flow (we have the CapEx, Vacancy, PM, and repairs set aside already) and hope to get the best return long term. To me this looks like paying the least amount of interest possible. The question is would it be better to get a 30 year mortgage and payoff a larger principle ($600 extra each month) or get a 15 year mortgage and payoff the the extra principle on a lower interest rate ($350 extra each month)? With all of the cash flow paying the mortgage off, the loan would be paid off in the same amount of time. Thoughts?