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This page is part of Owning a Home, the CFPB’s set of tools and resources for homebuyers.
We are the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly. Learn how the CFPB can help you.

Understand loan options

Not all home loans are the same. Three key choices are the loan term, or length of the loan, the interest rate type, and the loan type. Use our guide to understand how these choices affect your monthly payment, your overall costs both upfront and over time, and your level of risk. 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
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