20-yr rate sometimes is better than 30-yr, depending on lenders.
Main considerations for 15-yr vs 30-yr:
- The rate difference between 15-yr and 30-yr (the smaller, the better to go with 30-yr)
- Total loan amount
- Your "potential" cashflow on this property. You want to at least break even, no matter 15-yr or 30-yr
- The desire to zoom up rental holding quickly - then you want to max. cashflow and use 30-yr.
- Your overall cash/liquidity position to handle unexpected financial/liability hits.
- If you plan to sell the rental in a few years if market goes up quite a bit, or you want to hold it for long term as a cash machine for retirement
- Your very own comfort zone ...
