Been thinking about refinancing to knock out my mortgage quicker. Torn between going for a shorter loan term with higher monthly payments or keeping payments lower and just tossing extra cash at it whenever possible. Um, anyone tried either route and regretted it?
"keeping payments lower and just tossing extra cash at it whenever possible"
Tried this route initially, but honestly, life kept getting in the way—vacations, car repairs, surprise expenses. Switched to a shorter term last year; higher payments sting a bit, but the forced discipline feels worth it so far.
I get the appeal of forced discipline, but honestly, locking yourself into higher payments isn't always the best move. A few years back, I went down that path and it worked fine—until I stumbled on a great investment opportunity. Suddenly, those higher monthly payments felt like handcuffs, limiting my flexibility to jump on deals quickly.
What I've found works better (at least for me) is keeping the lower monthly payments and setting up an automatic transfer into a separate account each month. That way, the money's still earmarked for paying down principal, but if something unexpected pops up—like a promising property or even a personal emergency—I have immediate access to cash without refinancing or scrambling around.
Not saying your approach is wrong, just that there's value in maintaining liquidity. Life has a funny way of throwing curveballs exactly when you least expect them...
"Suddenly, those higher monthly payments felt like handcuffs, limiting my flexibility to jump on deals quickly."
Totally relate to this. A couple years ago, I was aggressively paying down my mortgage—felt great watching that balance shrink. Then a prime property popped up unexpectedly, and I was scrambling to free up cash. Learned the hard way that liquidity can be just as important as debt reduction. Curious though, how do you decide exactly how much cash cushion is enough without feeling like you're leaving money idle?
