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Securing a loan is a significant financial step, and while the headline interest rate might seem straightforward, there are several subtle factors that can dramatically shape the final cost. Beyond the obvious elements like how much you borrow and for how long, other hidden influences play a crucial role. Understanding these can empower you to navigate the lending landscape more effectively, potentially unlocking more favorable terms and saving substantial amounts over the repayment period. As we head into 2025, new trends and persistent financial dynamics are shaping how lenders assess risk and price loans. Let's dive into five key, often overlooked, factors that influence your loan interest rate.
