Cash out Refinance question

[Andrew Yaggie]

Good Morning,

I am purchasing my first rental property and am planning to do a cash out refi on my current home, as it is nearly paid off and seems to be the easiest, most cost effective route.

I came across Scott Trench's article on this website and spreadsheet which details buying a property in cash vs 15/30 year mortgage and the idea that leverage (especially in the first 7 years) can really generate cash flow, that can be reinvested in the market, creating greater wealth in the long run.

My question is this:  I can either get a 15 year 100k refi at 3.875 for 15 years ($733/mo), or 4.25 for 30 years ($491/mo).

Either payment amount is fine, though keeping Scott's rule in mind, would you do a 30 year despite the greater interest?  I realize it isn't significant, but even looking at the numbers, it is difficult to decide.

Thoughts?