Posted by ken in sc on November 03, 2005 at 06:45:06:
I like to have the lowest fixed rate interest payment that I can get. That way, durind times of high vacany or other cash flow worries, I can still make my payments. Therefore, a 30 year fixed rate mortgage is best to me. If the property can afford a 15 year mortgage, I still say get the 30 year lower payment. You can always pay more. But if you get the 15 year payment, the option to pay less goes away. If you could get an interest only payment at a fixed rate forever, I would get that. But you can’t. All interest only loan I see are only interest only for a specific period. Then, you must lock in the rate later and it might be higher than todays rate. So again, I say get the 30 year fixed, save what needs to be saved for repairs, vacacies, and reserves, and put the rest toward extra principle or new purchases.