If you have high repaying capacity, then it is advisable that you opt for less number of years for repaying the loan as it will reduce the overall burden of the interest. Though you are ready for repaying the loan as quickly as possible, but if you miss to mention this in the loan agreement, it would be tough to alter once the application is processed by the organization that is lending you the money.
"Investment banks" create loan agreements that cater to the needs of the investors whose funds they attempt to attract; "investors" are always sophisticated and accredited organizations not subject to bank regulatory supervision and the need to cater to the public trust. Investment banking activities are supervised by the SEC and their main focus is on whether the correct or proper disclosures are made to the parties who provide the funds.
Always obtain loan agreements in writing and read the fine print. One of the biggest mistakes borrowers make is entering into verbal agreements. If things go wrong there is no evidence to prove the case. Debtors should know the number of deferred payments, payment schedule, fees or penalties, and how the lender reports suspended payments to credit bureaus.
Defined and addressed in the contract are the issues concerning the agreement. First and foremost, the rights and obligations of both parties must be defined in the written contract. Termination of contract and termination fees should also be included. Commonly, you will find the interest rates and other applicable fees included in the agreement.