Amortize the housing loan or carry out the long-awaited remodeling?

Often, when you have a housing loan to pay, the question arises: is it better to pay off the loan or invest that money in remodeling?



Before making a decision, it´s important to consider several factors. First, it is necessary to analyze the credit interest rate and compare it with the return that can be obtained with an investment.



If the interest rate on the loan is higher than the rate of return on the investment, it is better to pay off the loan. This is because, in this way, it is possible to reduce the amount of the loan and, consequently, reduce the amount of interest paid in the future.



On the other hand, if the credit interest rate is lower than the return on investment, it may be advantageous to invest the money in remodeling. In this way, it is possible to obtain a higher return than the amount saved when amortizing the credit.



In summary, the decision between amortizing the credit or investing in remodeling should be based on a careful analysis of factors such as the credit interest rate and the return on investment. It is recommended to seek professional advice before making any decisions.


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