I don't think a 30 year loan is really intended to last 30 years. At some point you will refinance, or overpay to get it paid quicker. The longer loan term give

I don't think a 30 year loan is really intended to last 30 years. At some point you will refinance, or overpay to get it paid quicker. The longer loan term gives you flexibility to not be forced to pay as much principle, but anyone taking a 30 year loan should have a plan to increase their income or something (or reduce their lifestyle) and knock some chunks out of that. If you can "handle" it, and most people can't, maybe me included - it is logically better to have the money as an effective LOC in an offset than paid off the loan. That gives you more flexibility. (Unless you want to take out other loans, say for a business, then it might work against you). In theory the best loan would be interest only. Assuming you have the discipline to do something better with that money you were going to pay back - and assuming you get as good a rate (which you wont). So in practice NO but if you have discipline and get a good rate, a loan that you are not forced to pay back (other than interest) is a good thing!