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Understand loan options

The kind of mortgage you choose has a big impact on how much you end up paying—how much you’ll have to pay upfront, your monthly payment amount, and the total cost of your loan over time. It also affects the level of risk you take on. Knowing what kind of loan is most appropriate for your situation prepares you for talking to lenders and getting the best deal.

A loan “option” is always made up of three different things:

  1. Loan term
  2. Interest rate type
  3. Loan type