Rachel Cruz

And I'm so sorry about the devastation in your area.

We think about you guys so much.

So we're praying for you.

Thanks for the call.

Today's question comes from Lauren in New Mexico.

I currently own three rental properties and have 30-year mortgages on two of them.

You say to have 15-year mortgages because you pay it off faster.

If I am putting my profits from my rental toward my principal on a 30-year mortgage and can pay it off in 15 years, is there a need to switch it to a 15-year mortgage?

What's the reasoning behind the 15-year mortgage?

I make more profits with a lower monthly payment, which puts more money towards the principal.

Well, Lauren, for starters, we would say not to even have rental property if you're not able to pay cash for it.

So technically speaking, I mean, if you could pay it off quickly, I would probably just sell one and throw some of the equity at the other and make that a goal to sell it.

But having, yeah, three rentals

that have mortgages on them.

Yeah, not the best idea, not really the Ramsey way to do it.

But for your primary home, we do say a 15, even though people, this is one of those that I feel like is a slippery slope because a lot of people still do the 30 and whatever it is.

But the thing to remember is that your intentions don't always line up with reality.

So if you have the intention of paying a 30 like a 15,

you know, stuff happens and you're like, oh yeah, well, we won't pay extra this month.

We'll make sure to catch up next month.