> knowing that the bank still holds the title to your house.

While the bank holds the title on a financed car, they don't actually hold title on your house. They will have a recorded lien, of course. But you hold the title, which should help you sleep ;p.

That's why a house is foreclosed, and a car is repossessed. Repo is lender calls the tow peeps and they pick up your car; foreclosure requires notice and often court and plenty of bureaucracy.

Neither option is fun, of course.

On topic, I was paying a little extra on my mortgage (mostly as I rate adjusted down, I would tend to keep paying the old payment), but when savings interest is more than mortgage interest, it was just as easy to sleep with a savings balance equal to the mortgage balacne as with no mortgage.