Here's another debt choice: given a mortgage with over 20 years left on the term and a sudden cash windfall of, say, 20% of the remaining principal, and assuming there's nothing better to do with the money than applying it to the mortgage would you rather (1) pay off some principal now thus effectively shortening the term but allowing the monthly bill to stay constant or (2) re-cast the loan by paying off some principal, still have 20 years left of payments, but each monthly bill is now smaller? ... Personally I'd opt for (2) because it immediately gives more breathing room especially if something bad were to happen. Going with (1) may save more money ultimately, but doesn't reduce the financial risk until the final payment is made.