You may want to make additional loan payments if the interest rate you are paying is higher than you could obtain from an investment.

Question

Quizplus · Accepted Answer

If the interest rate on your loan is higher than what you could earn through an investment, you would actually save money by paying off your loan early rather than investing the money. This is because the interest you are paying on the loan is likely to be higher than the return you could expect to earn from an investment. Therefore, making additional loan payments can be a smart financial move in some cases.

You May Want to Make Additional Loan Payments If the Interest