Should I re-fi my rental house

[Michael Cronin]

I rent my old house (was unable to sell house when moving to new house) and have a outstanding mortgage of 95K at 4.75 interest rate.  I was looking in re-fi.  Can do a 15 year mortgage at 3.25% and pay close to what I am paying on current mortgage or a 30 year at 3.75% and lower my payment by a couple hundred dollars?  My plan is to keep the house for 10 more years (max) and then sell.  What should I do, 15 yr. or 30 yr.?

[Megan Aldridge]

I'm a conservative investor, so I favor the 30 year loan with no pre-payment penalty.  It still lowers your payment by a couple hundred which hopefully improves your cash flow.  On the flip side, re-financing can be a good opportunity to cash out for a new investment which is something to consider as well.  So you could refi that prop and then cash out what you may need for  down payment or rehab funds on a new project.   I always favor spreading out the loan because I figure if the "stuff" hits the fan, the lower payment will be easier to handle.