“If you really have extra money, you are probably better off paying down your principal and making your regular payments on time.”
For me the issue is my income is bumpy and unpredictable. I have money now, I know I need to pay $50,000 in mortgage payments over the next year, might as well make a year’s worth of payments now.
Maybe I can pay even more down, maybe not, but at least that $50,000 reduces the balance I am paying 3.75% on rather than sitting in a 0.1% checking account with auto-bill.
