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You can have a fixed rate, variable rate, or even both when purchasing your own home. Then there is 1 bank offering this interest rate that is cheaper than a second yet the comparison rate is higher and the second bank is the better choice. There are a lot of things to understand and generally speaking you may not get it explained well enough when you are making the choice. We often put so much pressure on making the choice that it becomes a point of stress in our lives when it really shouldn't be.