20 or 30 year loans?

[CoolGeek]

This is a general question on loan terms.

If I can get a low interest rate, should I borrow a 30 year term or 20 year term?

I am 40 now, and I plan on retiring when I am 60, so I am leaning towards 20 year loan so that once i hit 60, all my income properties would be paid off and i'll be collecting income from rents (100% free from repaying the bank).

On the other hand, if I took 30 year loans, I could possible buy more properties as monthly repayment for each is lower.

Any ideas?

[Dunning]

That depends on what strategy you are looking at. Do you have enough properties at the moment to provide the lifestyle you desire? Are you planning on working part time past 60?

Why not give yourself both options, mortgages over 30 years but make the payments as if they were over 20, or a mixture of mortgages at both terms?

Side by side cost can be easily seen here.

http://www.interest.co.nz/calculators/mortgage-calculator

[mattinvestor]

I think you should take 30 years mortgage, but try to pay it off in 20 years. But, of course, it depends entirely on what you are looking for and how many properties you already have.

[onno]

I am more conservative. I ll try to pay off as soon as I can. Specially the interest rates are very low at the moment....