Financing
Loan Term
Years over which the loan amortizes. 30-year fixed is the default; 15-year fixed reduces total interest paid but spikes the monthly payment.
Example
On a $300k loan at 7%, 30-year = ~$2,000/mo payment ($718k total paid). 15-year = ~$2,700/mo ($486k total). 30-year keeps cash flow strong; 15-year builds equity faster.
Why Loan Term matters
30-year vs 15-year is the classic trade. 30-year wins on cash-on-cash return; 15-year wins on total wealth accumulated. Most investors pick 30-year for flexibility, then make extra principal payments when cash flow is strong.