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Updated about 4 years ago,
15yr vs 30yr more cash now or later, your help please
First post here and I appreciate your help in advance.
I have 7 four family buildings and one single family rental and I am in the process of refi with Fannie Mae and Freddie Mac. In the next week or so I need to decide if I plan on putting them on a 30yr or 15yr mortgage. I understand the difference in interest, payback time, and amount of $$ back in my pocket per month but I cant DECIDED......... I am loosing my mind.
1. I refi to all 30yr at or around 3% save $1800 per month just in mortgage payments.
*Its unlikly to lock in all this money at such a LOW % rate for 30 years, The extra $$ per month is a really nice bonus.
2. Refi four buildings at 15yr and the rest at 30yr. This would allow me to keep somewhat the same income (I would loose 300$ per month) but doing this would build more equity sooner than later.
My plan is to buy more properties and an owner next to a four family hinted he will sell off 5 multi unit buildings in the area I invest in in the next 2-5 years, Nothing offical. As I type this the easy answer is half and half but missing out on that extra cash flow is hard to pass up.
Any suggestions from people in a Similar situation???
Thanks for your ideas/help
Jake