First time home buyer flipping a house 15 year vs. 30 year loan

[Cory Howes]

Hello Bigger Pockets,

My husband and I are in the process of deciding between a 15 year vs. 30 year loan for a $48,000 house. Interest rates for 15 year are 3.0% and 3.75% for 30 year loan. We plan on fixing up the house and reselling within 5 years after I am done with graduate school.

The difference between mortgage payments is only $100/ month. In other forums it seems as though everyone is quick to suggest the 30 year loan, just wondering if anyone had any thoughts on our circumstance.

Thank you.

[Aaron Junck]

So your personally going to live in it?

I have always preferred a 30 year. Here is why. It gives you options. What happens if you or your significant other becomes ill or loses a job. That extra $100 can be a lifesaver in a pinch. As long as everything is going fine you can easily pay an extra $100 a month as you like. You will however have a hard time going to a bank and saying hey can I refinance to a 30 once you get a hardship. So like I mentioned I always shoot for a longer term and give myself the option to pay it off as soon as I feel. Cash flow can be your friend or foe.

Also you may have a hard time getting a mortgage under 50k some banks don't mess with mortgages under 50k. Just an FYI.