Refinancing can be helpful, but it's not always the best move, especially if you're already a few years into your mortgage. A couple things to keep in mind:
- Refinancing resets your loan term, so even if the rate is lower, you might end up paying interest for more years overall.
- Closing costs add up quickly—sometimes it takes several years just to break even on that expense.
- If your current rate is decent, you might actually save more by consistently paying extra towards principal rather than refinancing.
"rounding up can help a bit"
Honestly, I've found that consistently adding even small amounts directly toward principal each month makes a surprising difference. When I started doing it, I was skeptical too, but after a couple years, the principal dropped noticeably quicker. It feels slow at first, but momentum builds. Just crunch the numbers carefully before jumping into refinancing... sometimes the simplest approach is actually the most effective.
I've been there too, felt stuck paying mostly interest for years. A few things that really helped me:
- Making bi-weekly payments instead of monthly. This adds up to one extra payment a year without feeling it much.
- Using tax refunds or bonuses directly toward principal whenever possible.
- Even small extra payments (like $50-100) regularly can shave years off the loan.
Refinancing isn't always the magic fix... sometimes it's just about steady, consistent steps toward principal. Slow but steady does work.
"Even small extra payments (like $50-100) regularly can shave years off the loan."
Totally agree with this. When I bought my first property, I felt like I was just spinning wheels paying interest. One thing that helped me was setting up automatic transfers for those small extra payments—out of sight, out of mind. Also, whenever I got a raise, I'd bump up my payment slightly. Didn't feel it much month-to-month, but it made a noticeable dent over time. Slow and steady really does add up...
Setting up automatic transfers is a smart move. Another thing worth considering is making bi-weekly payments instead of monthly ones—you're essentially sneaking in an extra full payment each year without really noticing. I started doing that a couple years back, and it's surprising how much faster the principal drops. Might not feel like much at first, but trust me, you'll start seeing progress sooner than you'd think...
I've heard about the bi-weekly payment thing before, but honestly, I've always been kinda skeptical. Like, does it really make that much difference? I mean, I get the math behind it (sorta), but it just feels like one of those "too good to be true" hacks you see floating around online.
Funny enough, my cousin swears by this method. He started doing bi-weekly payments on his car loan a year ago, and now he's always bragging about how much quicker he's paying it off. But he's also the type who gets excited about coupon stacking and cashback apps, so I never know if it's actually legit or just another one of his quirky obsessions...
Maybe I should just bite the bullet and try it myself. Worst case scenario, I guess I end up paying off debt slightly faster by accident—there are definitely worse things that could happen, right?
