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For instance, if you borrowed $40,000 at ten.8% interest and you paid it back on a 120 month term, your monthly payments would be $460.32 a month. Over the life of the loan, merely fewer pay an overall total of $15,238.55 in attention. If you extended the life for the loan to twenty years or 240 months, it would lower your monthly payments to only $305.33. However, you would pay almost twice the same amount of interest when your interest is an astounding $33,280.59. As you can see, extending the lifetime of the loan will help you save money in you are able to term, but it really really will ultimately cost you more.

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