Paying off financing is not always the best decision; understand why

Amortize or invest? The decision that divides economists
Those who receive extra money may be in doubt whether to pay off their home loan or invest the amount. The decision depends on the opportunity cost, that is, which of the options offers the greatest financial benefit.
The comparison must take into account the interest on financing, the profitability of the investment, in addition to taxes, inflation and risks. If the net income from the investment exceeds the cost of the debt, investing may be the best choice.
Experts say that paying off financing is usually more appropriate when interest rates are high or the financial situation is tighter. Investing tends to make more sense for those who already have an emergency fund, pay low interest and are able to obtain a return higher than the cost of financing.
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Source: G1