"Did you find that the stress eased up once you adjusted to the new payments, or did you end up wishing you'd stuck with the 30-year?"
Honestly, I went through something pretty similar a couple years back. We refinanced our VA loan from a 30-year down to a 15-year because the numbers looked fantastic on paper. Lower interest rate, huge savings in interest over the life of the loan—seemed like a no-brainer. But yeah, life definitely loves throwing surprises your way.
For the first year or so, things felt tight. We had planned carefully and thought we'd accounted for everything, but unexpected car repairs and medical bills popped up at exactly the wrong time. It was stressful for sure, and there were moments when I wondered if we'd made a mistake. But after we got through that initial rough patch (and tightened our belts considerably), things started to smooth out.
Looking back now, I'm actually glad we did it. The forced discipline of higher payments pushed us to budget better and cut unnecessary expenses—stuff we probably should've been doing anyway. Plus, seeing the principal balance drop faster every month is pretty motivating. But I'll be honest: if our income had been less stable or if we hadn't had some savings cushion to fall back on, I might've regretted it.
So I guess my takeaway is that refinancing to a shorter term can definitely pay off, but it's not without its risks. If you're considering it, I'd suggest running the numbers based on your worst-case scenario—not just your ideal situation—and make sure you're comfortable with those figures before pulling the trigger. It's tempting to chase those big savings, but like you said, it's always about balancing comfort versus savings...
We did something similar—went from 30 to 15-year VA refi—and yeah, the first few months were a bit nerve-wracking. But once we adjusted, it felt good seeing that balance drop quicker. Hang in there, it does get easier...
We thought about going shorter too, but after running the numbers, decided to stick with the 30-year and just make extra payments when we can. Felt like it gave us more flexibility—especially with kids and unexpected expenses popping up. I get the appeal of seeing that balance drop faster, but for us, peace of mind knowing we can scale back payments if needed was worth more than a quicker payoff...
"peace of mind knowing we can scale back payments if needed was worth more than a quicker payoff..."
Totally get the flexibility angle, but have you considered the interest savings long-term? Sometimes locking into a shorter term upfront can save more overall—even if it feels tighter initially. Just something to weigh carefully...
Yeah, flexibility is definitely nice to have, especially if life throws you a curveball. But honestly, I've seen folks underestimate how much interest piles up over time. Had a client once who went for the longer term thinking they'd pay extra when they could...but life happened, and they rarely did. Ended up costing them thousands more in interest. Not saying it's always the wrong move, just something to keep in mind before committing.
