LogFAQs > #899127568

Also depends on the interest rate.

Say 12 month has 1% monthly rate and 60 has 2%. You pay both at 12 months. Monthly payment $8.3usd

Assume your loan is 100 usd

First month interest for 12month loan would be $1 usd. So from yourmonthly payment you are paying $1 interest and rest toward what you owe. Example you would owe $92.7 usd after paying your fist month. After second month 85.33

In 60month loan your interest would be $2, after payment you would owe $93.7. After second month 87.27

Notice how much it varies due to the interest rate even if you pay them on the same time.

In this example 1%= 1 USD which is not much but depending on the loan amount and interest rate might be too much diference.

Tl;dr: Pick whichever interest rate is lower if you can afford both terms. If interest rate is the same and there is no prepayment penalty pick the longer term but pay it early. This gives you the advantage of should you run into financial difficulties you can pay the minimum without incurring on late fees.
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