What is an advantage of taking out a long-term loan instead of a short-term loan?
A. A long-term loan usually requires a low debt-to-income ratio.
B. A long-term loan usually requires no credit check.
C. A long-term loan usually has a lower total cost.
D. A long-term loan usually has a lower interest rate.
Answer (1)
A significant advantage of long-term loans is that they usually come with lower interest rates compared to short-term loans. This makes them more affordable for borrowers over time, even if they can result in higher total interest payments. Additionally, long-term loans typically offer lower monthly payments, providing flexibility for financial management. ;
