12 Questions To Ask Yourself Before Taking On A Loan
- By
Julia Austin
Source: Peter Cade / Getty
What matters more: paying less monthly or overall?
Only you know your financial situation. So you know what will make you feel like a winner in the long run. For some, it’s paying as little as possible every month. For others, it’s paying as little as possible overall for this money. If you want low monthly payments, you’ll want a longer loan term. The interest rate will be slightly higher than on a short loan, but spread out over the years, it will result in more digestible monthly payments. If you want to pay as little as possible overall for this loan, then you’ll likely want a shorter term. You can get a better rate on a shorter term. The lender feels more comfortable charging you less, knowing they’ll get paid back sooner.
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