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Benjamin J Paoletti's profile image
Benjamin J Paoletti's profile image
Benjamin J Paoletti
  • Investor
  • from Chicago, IL
  • Member since Apr 27, 2022

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Benjamin J Paoletti's profile image
Benjamin J Paoletti's profile image
Benjamin J Paoletti
  • Investor
  • from Chicago, IL
  • Member since Apr 27, 2022
Benjamin J Paoletti
  • Investor
  • Chicago, IL
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Private Lending & Conventional Mortgage Advice

New Investor - Pay Down Principal OR Save Capital?

Benjamin J Paoletti
  • Investor
  • Chicago, IL
Posted

Is it better for a new investor to save on monthly payments to build capital OR take advantage of bi-weekly payments and additional principal paydown?

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Robin Simon
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Robin Simon
#1 Private Lending & Conventional Mortgage Advice Contributor
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Replied
Quote from @Benjamin J Paoletti:

Is it better for a new investor to save on monthly payments to build capital OR take advantage of bi-weekly payments and additional principal paydown?


 Its definitely going to depend on a lot of factors and be an individualized decision.  Highest factor typically is what is your current interest rate.  Generally, if its very low (below current market), then usually smart to pay only minimum, flip side if rate is high (higher than what could otherwise be earned in treasuries for example)

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