Which is better short term loan or long term and prepay that?

Answers:1   |   LastUpdateAt:2012-09-10 21:59:02  

Question
Channin
Asked at 2012-09-10 04:37:03
What is best loan short or long term and to pay in advance ?
Answer1SebastianeAnswered at 2012-09-10 21:59:02
Generally , you want the loan to match the asset . Therefore, if you are borrowing to buy a house , you want a long-term loan so that within a year we are not screwed by either much higher rates or the inability to obtain financing . Alternatively , you would not want to be paying off a car that sold 25 years to 5 years . MedlinePlus MedlinePlus The rates are usually a little lower in the long term , as the company has less uncertainty and have you locked up , however , the rate applicable to the period of time , so you would end up paying less in a 10% for a year at a rate of 9% at 50 years for the same amount of money borrowed . MedlinePlus MedlinePlus Find the best rate for a period of time that makes sense for your purchase . In general , do not want a variable rate , and that can change interest rates . Now is a good time to set a low interest rate if you are thinking long term . Good Luck !
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