greenieS
Verified member
This question is asked by many young people when they want to have their own home, because the property comes with a long-term loan: usually 30 years.
30 years has come to represent a number with bad luck, a number that brings, at its simple utterance, migraines. 30 years is associated with burdens, indebtedness.
Many young people, because they notice the pressure of a long-term debt, choose to take out a short-term loan: 15 years. Simple calculation: 28 years + 15 years of loan = 43 years - age at the end of the loan and obtaining the property versus 28 + 30 = 58 years. Optimistic is the first calculation and the decision is made: for 15 years! "And that's a lot, the reply follows, but it's still halfway there!"
This is a psychological decision.
Let's see how we do with the decision from a financial point of view!
A loan of 65,000 euros taken for 15 years implies a monthly rate of 525 euros versus 361 euros for 30 years. The short-term financial impact is greater than the long-term one. "Okay, but a short-term effort is better than a long-term effort. Even if the effort is greater, I know I will finish faster. " This is the motivation for a great financial effort.
I ask you, dear trendri.com users, what would you choose: a high rate in the short term or a low rate in the long term? This is in case you do not have the opportunity to buy with cash.
30 years has come to represent a number with bad luck, a number that brings, at its simple utterance, migraines. 30 years is associated with burdens, indebtedness.
Many young people, because they notice the pressure of a long-term debt, choose to take out a short-term loan: 15 years. Simple calculation: 28 years + 15 years of loan = 43 years - age at the end of the loan and obtaining the property versus 28 + 30 = 58 years. Optimistic is the first calculation and the decision is made: for 15 years! "And that's a lot, the reply follows, but it's still halfway there!"
This is a psychological decision.
Let's see how we do with the decision from a financial point of view!
A loan of 65,000 euros taken for 15 years implies a monthly rate of 525 euros versus 361 euros for 30 years. The short-term financial impact is greater than the long-term one. "Okay, but a short-term effort is better than a long-term effort. Even if the effort is greater, I know I will finish faster. " This is the motivation for a great financial effort.
I ask you, dear trendri.com users, what would you choose: a high rate in the short term or a low rate in the long term? This is in case you do not have the opportunity to buy with cash.
