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What am I misunderstanding about comparing interest rates, when deciding where the next dollar should go?
What am I misunderstanding about comparing interest rates, when deciding where the next dollar should go? Let's say I have a 100k mortgage at 2%, which I pay aggressively, an extra $100/mo. The rule seems to be: that extra $100/mo could be making 6-8% in the stock market, so I should put it there instead, and consider that very low interest 2% loan 'free money'. ...but here's what I'm not understanding: the yearly (to make the numbers simple) intere...
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