Before taking a loan, you should know that there are both perks & downsides to longer & shorter loan periods. The longer the term, the lower the interest rate, but you will pay more interest. On the contrary, a loan for a shorter term will have you pay low overall interest, but the monthly payments will be high. So, if you consider a ten-year loan, you will pay a higher interest rate than a five-year loan but will have lower monthly payments.