36 month loans are more liquid.
60 month loans offer lower monthly payments to a borrower, less liquidity and a higher rate to the investor.
To make a long question short. Do you prefer 36 month or 60 month loans. Or, if you normally prefer 36, but you love 60 month with low loan amounts or some other filter... Yes, we can all backtest and just choose whatever the software tells us will be the best ROI, but psychologically, what are your thoughts?
Which is your preference and why?
Also is there enough data to support a 60 month sufficient back test?
