[quote=flu]
Does have a 30 year with a lower monthly increase my chances of qualifying for a second loan on say a rental, or no difference? [/quote]
YES! Still out here…
The obligation of a higher 15yr payment will be factored in to your debt ratio rather than a 30yr payment (which is lower)
In effect, that will affect your ‘chances’ of qualifying by raising your debt ratio.
Depending on your other debts & income, it may not be an issue, it depends on your back end ratio.
You may or may not be able to use projected rental income to qualify.
Although converting a primary home to a rental has not been the worst thing for many people in the past, in many cases it is a very poor financial decision to do this, esp if you have a lot of equity.
The emotional attachment is irrational.
***********
Your cost of less than 1% to save .50% on your rate will be recovered in about 20 months.
If you add it to your balance, you can pay down your principal at anytime. You are financing the $3K cost at less than 3% which may be tax deductible for you.
Regardless of anything else, do you mind paying less than 3% to borrow money for 15yrs ?
