Re: 40 yr. vs 30 yr. mtg. Which is better? - Posted by Ed Garcia
Posted by Ed Garcia on August 02, 2007 at 07:16:36:
When we determine our financing, itâ??s to do the job that best suits us.
The average home buyer either moves or refinances in 6 years.
You have already ear marked this house as a rehab to live in short term, and then either sell or keep as a rental.
If I intend to sell, then I would do the forty year for the lowest payment, knowing the loan will be short term. If I intend to hold the property, I would go 30 years giving me a self liquidating loan that will eventually be paid off by the tenants. This will give me residual income when I retire.