Worth it to pay a little extra on a 30-year loan?

[Kaylee Walterbach]

Hey all! 

I ended up with a unicorn LTR that cash flows a significant amount each month. We're looking at $745/month cash flow even after very cushioned expenses (vacancy/maintenance/capex). Obviously, we are THRILLED to have this property.

I'm curious: From a loan perspective, would it make any sense to pay off a little extra each month? Even if it's just $50-100. I've looked at all the mortgage payoff calculators and see how much money I can save in the long run, but it's hard to wrap my head around the pros and cons of doing this for a 30-year loan.

For extra context, we renovated the property and have a lot of equity, so there might be a time when (if interest rates go down) we do a cash-out refinance to grab that equity. That might make the extra monthly payments pointless?

Thanks all for your input!

[Ned Carey]

@Kaylee Walterbach this is a relatively easy decision.  

Any money you use to pay down a mortgage faster is the same as investing that money and earning the same rate as the mortgage.  In other words if your mortgage is at 6%, are you happy investing $50-100 a month at 6%?

Even if you are, consider that the money is tied up until you sell or refinance the property.