Pay off a $25,000, 4.5% loan or put it to a $75,000, 5.5% loan

[Chad Minette]

Should I pay off a $25,000, 4.5% loan or put the money towards a $75,000, 5.5% loan. I don’t have the time to buy another property at this time and am focusing more on paying down mortgages.

[Shiloh Lundahl]

@Chad Minette I would do neither. It is not difficult to lend 25k privately at 8% - 10% and use the interest to pay down your loans while keeping the 25k. Arbitrage is how a lot of people create money. It’s how banks make money. Be a bank.