Paying more each month vs. refinancing to a shorter term—what’s smarter?

I get where you’re coming from—locking into a 15-year loan sounds great on paper, but it’s a big commitment. Here’s how I usually break it down for myself:

1. Flexibility: Extra payments on a 30-year give you wiggle room. If something comes up (job change, medical stuff, whatever), you can always drop back to the minimum payment without penalty. With a 15-year, you’re locked into that higher monthly bill, no matter what.

2. Interest: The 15-year will save you a ton in interest over time, and the rates are usually better. But if your budget’s tight, that savings might not be worth the stress.

3. Credit impact: Refinancing means a hard inquiry and a new account on your credit report. Not a huge deal, but something to keep in mind if you’re planning any other big credit moves soon.

I’ve stuck with my 30-year and just throw extra at it when I can. No regrets so far, but I do wonder if I’m missing out on more savings. Have you run the numbers on how much you’d actually save in interest with the 15-year versus just paying extra on your current loan? Sometimes the difference isn’t as dramatic as it seems...

I’ve run the numbers a few times on this for different properties. Honestly, unless you’re getting a much lower rate with the 15-year, paying extra on a 30-year often gets you close to the same interest savings—without losing flexibility. The forced discipline of a 15-year is nice, but life throws curveballs. I’d rather have the option to scale back if needed. That said, if you’re someone who needs that structure to stay on track, the 15-year can be worth it. Just depends on your risk tolerance and cash flow.

Here’s how I’ve looked at it over the years:

- Flexibility is huge. I stuck with a 30-year and just paid extra when I could. There were a couple years where unexpected stuff came up (car repairs, medical bills), and I was glad I wasn’t locked into a higher payment.
- On the other hand, my brother did a 15-year and loved the “set it and forget it” approach. He’s not as tempted to spend the extra cash elsewhere.
- Interest rates matter, but sometimes the difference between 15- and 30-year isn’t as big as people expect. If you’re not getting a killer rate on the 15, it’s hard to justify losing that wiggle room.
- One thing I wonder: has anyone actually regretted NOT going with the shorter term? Or vice versa—felt trapped by the higher payment?

Curious if folks have run into prepayment penalties or weird lender rules when paying extra on a 30-year? That tripped me up once with an old loan...

Title: Paying More Each Month vs. Refinancing to a Shorter Term—What’s Smarter?

That’s a good point about lender rules—my old mortgage had a weird clause where extra payments only went to principal if I wrote a separate check and labeled it “principal only.” Otherwise, it just counted as an early regular payment, which didn’t help much. Definitely worth double-checking the fine print.

I actually did the refinance to a 15-year about three years ago. Here’s how it played out for me:
- The lower rate was tempting, but the real kicker was the forced discipline. I’m not the best at consistently making extra payments, so having the higher payment baked in helped me stay on track.
- The downside was, yeah, less flexibility. When my car died last year, I had to dip into savings instead of just scaling back my mortgage payment for a bit. That stung.
- No regrets so far, but I do sometimes miss the breathing room.

If you’re good at self-managing, the 30-year with extra payments might be less stressful. But if you want that “no turning back” motivation, the 15-year can be a solid push. Just make sure you’re not stretching too thin, especially if your income isn’t rock solid.