I've been down this road myself—went with the shorter term thinking I'd be disciplined, but then the furnace died mid-winter...ouch. Flexibility definitely beats forced discipline when life throws curveballs. Extra payments when you can swing it seems smarter to me.
I get your point about flexibility, but honestly, I've seen plenty of people who choose lower payments intending to pay extra...and then never do. Life always finds a way to spend that extra cash, doesn't it? Maybe the shorter term forces discipline in a good way—like built-in accountability. Sure, emergencies happen (sorry about your furnace!), but isn't that what emergency funds are for? Curious if you've considered setting aside a separate fund instead of relying on lower monthly payments as a safety net...
"Maybe the shorter term forces discipline in a good way—like built-in accountability."
I see where you're coming from with the built-in accountability idea, and it's definitely valid. But from my experience working with clients, I've noticed that financial discipline isn't always about forced structure. Sometimes flexibility can actually empower people to manage their finances better, especially if they're proactive about it.
For instance, I've had clients who chose lower monthly payments intentionally—not because they lacked discipline—but because they preferred investing the difference elsewhere (like retirement accounts or home improvements). It gave them breathing room to handle unexpected expenses without dipping into emergency funds too often. Of course, having an emergency fund is ideal, but realistically, not everyone has one fully funded right away.
I guess what I'm saying is that shorter terms aren't always the best fit for everyone. It's more about knowing your own financial habits and comfort level rather than relying solely on external structures to enforce discipline. Just another perspective to consider...
"Sometimes flexibility can actually empower people to manage their finances better, especially if they're proactive about it."
Totally agree with this. When we refinanced a few years back, we debated the shorter term vs. lower payments thing too. Ended up going with lower monthly payments because we knew we'd have some big expenses coming up (hello, roof replacement 🙄). It wasn't about lacking discipline—more about having options and not feeling squeezed every month.
Honestly, the flexibility has been great. We've been able to put extra toward principal when things are good, but also had breathing room when life threw curveballs our way. Shorter terms definitely have their perks, but it's not always the best choice for everyone. Like you said, knowing your own habits and comfort zone is key.
We went with a shorter term refinance last year, thinking we'd save a ton on interest (which we will, eventually...). But honestly, some months feel pretty tight. Starting to wish we'd built in a bit more wiggle room like you did. Lesson learned, I guess.
