The Benefits of a 15 Year vs 30 Year Mortgages

If you decide you want to pay it off in 15 years, just increase your monthly payment and pay it off sooner. There’s nothing stopping you from paying down a 30-year mortgage early if you want to. If you get a 30 year loan, you can pay it off whenever you want.

Always take the 30 year for an investment property, cash flow is king, not equity, so you could always go with the option that gives you the greatest amount of write offs and the most cash flow. In this case, is the 30 year.

The difference in loan amounts between 15 years and 30 years is really such a small number after you account for write offs and inflation. You may as well just take the 30 year for additional flexibility, allowing you to re-invest the money at a higher return.

What a 30 year loan gives you that a 15-year loan doesn’t is FLEXIBILITY. With a 30 year loan, you’ll have access to your money as you need it due that you’re paying less money into an illiquid investment like real estate, and another example: you’ll have more free cashflow available to you at the end of the month.
The advantage to doing this is that it gives you more safety and leeway with your payments.

As an unpopular as to say, when you have your money tied up in a property, it’s not money that’s easily accessible to invest elsewhere at a higher return. So, home equity isn’t really going to be making you money. In order to get that money, you either need to sell the property or do a cash-out refinance, pulling out your money, but then taking out a brand new loan and starting all of this again.

If you’re getting a house where you can ONLY afford a 30 year house payment, I’d argue that you should lower your price range. Then, the ideal scenario here is that if you’re getting a home for yourself to live in, buy something where you could afford the 15-year mortgage, but take a 30 year for additional flexibility.

That's how taking out a longer term loan could leave you with way more money. Enjoy!


Subscribe to my channel for free offers, tips and more!
YouTube:    / @markrcabrera  
Facebook: www.facebook.com/ReinventedLiving/
Twitter: twitter.com/HouseswelistSE
LinkedIn: www.linkedin.com//company/houseswelist
Instagram: www.instagram.com/HouseswelistSE
Blog: markcabrera.com/blog
Pinterest: www.pinterest.com/houseswelist/