When you or your loved ones need round-the-clock care, or even simple medical services at home every so often, the last thing you want to think about is the price. As more and more US citizens age into retirement, though, the need for care grows around the country, and the cost of that care grows along with it. If you have any trouble making sense of healthcare financing, use these factors to compare the options available, and make the best decision for your loan.

1.Annual Percentage Rate (APR)

Your APR refers to the amount you will pay each year, which the company determines by calculating a percentage of the loaned amount. The interest rate on your medical loan has a wide range available since it qualifies as a personal loan. Personal loans can have low rates, but medical loans are often significantly higher than average.

2. Fixed or Variable

Your healthcare financing will have either a fixed or variable interest rate. A fixed interest rate will keep your payments the same since the percentage does not change no matter how much or little of the bill is left. By contrast, a variable interest rate will adjust to the scale of the loan, which can change the length of time left on your loan and the exact amounts of each payment.

3. Time Constraints

Your loan will give you a certain length of time in which you must pay back the original amount as well as the agreed interest rate. This timeframe is known as the terms of the loan. You may have some options in setting the terms: a shorter time will result in higher payments, but you may save on interest, while a longer time will allow for smaller increments, but the interest may be more overall.

4. Extra Grace or Fees

Some loans will give you a grace period at the beginning of your timeframe, where interest will not build up on your account. Other healthcare financing options may charge for origination costs, which your financier will take out at the beginning of your terms. The origination costs are a one-time charge that your loan company will calculate based on a percentage of the loan amount, which sometimes factors into your APR.

As you prepare to take out a medical loan, consider these factors, and look for them in the contract you sign. Knowing the costs and interest rates upfront will help you have peace of mind even as you navigate the world of home healthcare.