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.

Question

GinnyAnswer · Answer

A major advantage of long-term loans is that they typically have lower monthly payments due to extended repayment periods. They can also offer lower interest rates, making them more affordable for borrowers. ;

Answered by GinnyAnswer | 2025-07-05

Anonymous · Answer

An advantage of taking out a long-term loan instead of a short-term loan is that long-term loans usually have lower interest rates, making the monthly payments more manageable. This allows borrowers to spread their payments out over a longer period. Therefore, the answer is D. A long-term loan usually has a lower interest rate. 
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