Hutch models out different growth rates vs. loan rates seen over history. Our propriety software helps you understand how both positive & negative arbitrage can affect your policy. He also discusses how top-line-compounding may actually benefit you in higher interest rate environments even though your loan payments go up.

Notable Timestamps:
2:04 – Dispelling myths about arbitrage
4:47 – How to measure the IRR of paying loan interest
8:58 – What happens if there’s no positive spread on interest
11:24 – Looking at when there’s lots of positive arbitrage on loans