anna,
It all depends on how much mthly cpf btoh u and ur FH have. For us, we are thinking of interest rate reaches the peak of 6% which is what ppl is paying when the economy is gd. Rite now, the interest rate is very low so we do not have any prob servicing the loan but when the economy return to its prime....interest rate will go up.
We are juz making sure we are safe when the interest rate goes up. That's why we decided we take a longer loan juz in case one of us decided not to work or lost his/her job ( touch wood ). You are rite to say that u will have to pay more interest when u hve londer yrs of loan. For our case, our loan amt is very little so we don't really see the pitch base on the current interest rate. Couldn't remember after which yr we can pay lump sum of the loan without incurring penatly fee....think that is what my hubby have in mind....