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Today we discuss the difference between principal & interest (P&I) and interest only (IO) repayments.
What are the typical differences for each? How will each impact your monthly cashflow? Is paying down debt wiser in all cases and why you might choose to pay interest only even on homeloan debt?
Like with most things in the lending world choosing the best strategy comes down to a gentle balance between getting the most efficient strategy from a financial standpoint, and your behaviour as a borrower and spender…
So there is no one size fits all prescription but a good understanding of the fundamentals will help guide you when deciding what is best for you.
Enjoy the show!
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The Long Property Show provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing in the Long Property Show constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
