FAQs

Should I prepay a loan or invest the extra money?

The better choice depends on the loan’s after-tax cost, prepayment charges, expected investment return, risk, liquidity needs, and emergency reserve. Prepayment.

The better choice depends on the loan’s after-tax cost, prepayment charges, expected investment return, risk, liquidity needs, and emergency reserve. Prepayment offers a more certain interest saving, while investment returns are uncertain. For housing debt, read pay off the mortgage or invest and model both cases. Tax treatment and product rules vary by jurisdiction, so obtain personalized advice where needed.

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