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This page is part of Owning a Home, the CFPB’s set of tools and resources for homebuyers.
The CFPB is a U.S. government agency created in 2011. We write and enforce rules to protect consumers, and we provide free tools and resources to help you make financial decisions.

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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