3 ms·
The duration of the loan doesn't change based on the interest rate. In both of OP's examples the hypothetical borrower pays the same amount per month, for the
by potatolicious 5y ago
The duration of the loan doesn't change based on the interest rate.
In both of OP's examples the hypothetical borrower pays the same amount per month, for the same number of months. A lower interest rate does not affect the duration of the loan. In neither case can the bank simply extend the duration of your loan.