Is a $10,000 loan @ 5% for 10 years with a $106 monthly payment better or 3% loan with a $100 monthly payment for 10 years. Why?

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asked Dec 14, 2019 153k views

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T D Nguyen · Answer 1 · 2019-12-18T20:47:38+0000

No.

The lower-cost loan is generally considered better from the borrower's viewpoint.

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If you're subsidizing the lender, then the more expensive loan will do a better job of that. It depends on what you intend by "better."

Is a $10,000 loan @ 5% for 10 years with a $106 monthly payment better or 3% loan with a $100 monthly payment for 10 years. Why?

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