That's spot-on about the flexibility angle. I've had clients who jumped into a 15-year mortgage feeling super confident, then life threw them a curveball—job changes, medical bills, kids needing braces (seriously, why are those things so pricey?). Suddenly, that extra breathing room would've been golden. Curious if folks who've done the 15-year ever regretted it down the line or felt it was totally worth the tighter budgeting...?
We refinanced into a 15-year about four years ago, and honestly, it's been mostly good but not without its moments. The lower interest rate was a huge draw, and seeing the principal drop faster feels great. But yeah, there've definitely been times when things got tight—like when our furnace died mid-winter (of course 🙄) and we had to scramble to cover it. We didn't regret it exactly, but we did have a few "what were we thinking?" moments.
One thing that's helped us is keeping a decent emergency fund. Without that cushion, I'd probably be singing a different tune right now. If you're considering it, just make sure you've got some savings set aside first...life has a funny way of throwing surprises your way when you least expect them.
We just bought our first house a year ago and I've been crunching numbers on refinancing lately. The lower interest and shorter term sound great, but I'm worried about exactly what you mentioned—those unexpected expenses popping up. Did you find your monthly payments increased significantly when you switched to the 15-year? Trying to figure out if the savings on interest outweigh the tighter monthly budget...
"Did you find your monthly payments increased significantly when you switched to the 15-year?"
Mine jumped up a bit more than I expected, honestly. But here's how I looked at it—if you have a solid emergency fund already set aside (think at least 3-6 months expenses), then the tighter monthly budget might be manageable. If not, I'd probably build that cushion first. Interest savings are awesome, but peace of mind when the AC decides to quit mid-summer...priceless.
Mine went up noticeably too, but honestly, after crunching the numbers, the long-term savings made sense. Did you run a detailed comparison yet? Sometimes seeing the total interest saved can make the monthly pinch feel worth it...
