A sum of money that a lender gives to a borrower that must be repaid along with interest

There are many types of loans to choose from when you're looking to buy a home. Each loan will have a different interest rate and term, which will affect how much you have to pay each month. How much you put towards a down payment will also affect your monthly payment. The 3 most common types of loans are fixed rate, adjustable rate, and balloons. A home loan is also called a mortgage.

See: Fixed rate mortgage, Adjustable rate mortgage, Balloon mortgage