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Real Estate Terms / Real Estate Dictionary

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15 years vs 30 years Mortgage
With a 15 year mortgage you will get a lower interest rate, but a much higher monthly payment. A 30 year mortgage will have a higher interest rate but the principle is spread out over a 30 year term. At the end of the loan term, you will pay significantly more for a 30 year mortgage than a 15 year mortgage.

1031 Exchange
Internal Revenue Code 1031 Exchange which allows an owner to defer paying income tax by trading one like property for another under very specific guidelines.

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