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Learn why a 30 year mortgage can be better than a 15 year mortgage when investing in real estate. Here is our listener question this week: Hi Linda, You talk about using leverage to purchase rental properties as well as making an extra payment each year to pay down the mortgage quicker.  I have a rental property that currently has a 15 yr note at 4% and we are paying approximately $360 per month out of pocket to cover the mortgage (incl. taxes, insurance, and PMI).  We refinanced about 4 years ago into the 15yr in order to reduce our interest rate and pay down the principle faster since we were underwater at the time.  Now we are back in the black and were considering refinancing into a 30yr mortgage (which would also be at 4%) in order to increase our cash flow and invest the savings each month either in the market or save it toward a down payment on another property.  Our payment would go from $1260 to $760.  I wanted to hear your thoughts on this plan.  We currently receive $900 per month in rent, which is