Good points all around. Reminds me of a client who refinanced to a shorter term, thinking they'd save big on interest...then their furnace died mid-winter. Suddenly, that tight budget got even tighter. Curious—anyone here had similar unexpected expenses pop up after refinancing?
Had something similar happen to me a couple years back. Refinanced to a 15-year thinking I'd be saving big bucks in the long run, and literally two months later my transmission decided it was done with life. Talk about timing... Honestly though, unexpected expenses can pop up anytime, refinancing or not. The key is having a solid emergency fund in place before tightening your monthly budget too much. Learned that one the hard way myself, haha.
Went through this decision myself recently and ended up choosing a slightly longer term with lower monthly payments. Sure, the total interest paid over time is higher, but having that extra breathing room each month really helps manage unexpected expenses—like your transmission issue. I ran the numbers multiple times (maybe too many, haha) and realized flexibility was more valuable to me than shaving off a few years. Just something else to consider...
"I ran the numbers multiple times (maybe too many, haha) and realized flexibility was more valuable to me than shaving off a few years."
Totally get where you're coming from, but I went the opposite route after crunching my own numbers. For me, the shorter term meant significant savings on interest, which outweighed the comfort of lower monthly payments. I figured I'd rather tighten things up now and have the mortgage gone sooner—especially after seeing how much interest adds up over time. But yeah, everyone's situation is different...depends on your priorities and financial cushion.
I see your logic, but I think flexibility might actually be underrated here. When I refinanced, I initially leaned toward the shorter term too—those interest savings looked really tempting. But then I had a friend who unexpectedly lost their job, and watching them struggle with a tight monthly budget made me reconsider. I realized that having lower monthly payments gave me breathing room to handle life's curveballs without stressing too much. Plus, with a bit of discipline, you can always pay extra toward principal when you have a good month financially—essentially creating your own shorter term without locking yourself into it. Just something else to consider...but yeah, like you said, everyone's situation is unique.
