Interest

The most obvious cost of a loan is the interest you will have to pay until the loan is paid off. When you are considering homeloans the total interest paid will be much more than the price of a home. When buying a $100,000 home and financing it with a 5% interest rate you will be paying more than twice the cost of the home in interest over the next thirty years. You can realize massive saving by coming up with a larger down payment and by increasing the amount of principle you pay down each month of the loan.