Comparison of 7 yrs & 10 yrs loan
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Hi
i am trying to compare a 7 yr loan and a 10 yr loan. After calculation, the extra interest outlay is $3800 for 10 yr loan.
But by so doing, the monthly instalment is $200 lesser.
As such, I am willing to consider a 10 year loan. But, may i know what are other implications ( things to look out) in doing so as banks like to insert tiny little print to their advantage. A condition which i am please to know is that there is no penalty for early redemption in both cases. But are there any other things to consider ?
For some advice please.
Thank you. -
Some advices i heard is that if you are planning to get a 10 year loan. You better prepare extra money JUST in case something goes wrong. You get a car now, after afew years, the value of the car drops and its hard to sell the car at a good price already. Not forgetting that you still have to pay the remaining loan and the money from selling the car is not even enough. Just some points to consider.
