"Fast forward 18 months, he hasn't touched those options once and jokes he's funding his lender's Christmas party... hindsight indeed."
Haha, sounds familiar. Had a couple last spring who were adamant about needing the flexibility to pay extra or skip payments "just in case." I gently pointed out they'd probably never use it, but they were convinced. Sure enough, they're now joking about their "generous donation" to the bank. Flexibility sounds great in theory, but in practice, most folks end up paying extra for peace of mind they never end up needing.
Totally agree—people love the idea of flexibility, but honestly, how often do life events line up neatly with mortgage payment schedules? Most folks just end up paying extra for a "what if" scenario that never happens... banks definitely know how to market peace of mind.
Exactly, banks are masters at selling us on the "just in case" scenario. But honestly, instead of paying extra for flexibility most people never use, it's smarter to build your own emergency fund. I've seen friends stuck paying premium rates for mortgage features they never touched, while a simple savings cushion would've covered them just fine. Banks count on our anxiety about the unknown—better to keep control yourself than pay them for peace of mind you can create on your own terms.
I get your point about banks capitalizing on our anxieties, but I'd argue there's still value in some of those flexible mortgage features. I've personally seen situations where unexpected life events—like job loss or sudden illness—made accessing built-in mortgage flexibility a real lifesaver. Sure, an emergency fund is ideal, but realistically, not everyone manages to build one substantial enough to cover major setbacks. Sometimes paying a bit extra upfront for peace of mind isn't just anxiety-driven; it's practical risk management.
"Sometimes paying a bit extra upfront for peace of mind isn't just anxiety-driven; it's practical risk management."
Fair point, but honestly, banks often package these "flexible" features at a premium that's disproportionate to their actual benefit. I've seen plenty of folks pay extra for flexibility they never end up using. Building even a modest emergency fund or having a line of credit separate from your mortgage can offer similar protection without inflating your mortgage costs. Flexibility is great, but it's worth questioning if the price tag always matches the value...
