You want the lowest mortgage rate when you buy a home, but how do you find the best rate? Mortgage rates are not one-size-fits-all. They vary from person to person. There are several factors that affect what rate you’ll be able to get from any lender: What type of lending company you use, your credit rating, the length of the mortgage, fixed rate or adjustable rate, and points you’re willing to pay.

You may find better mortgage rates at mortgage companies rather than traditional banks, because of the profit margin the lender builds into the interest rate. Banks pay interest to the people who deposited the money used for loans, plus keep interest for profit. Mortgage companies are sometimes more flexible. If you have a good credit rating, you’ll qualify for a lower mortgage rate than someone with poor credit. 15-year mortgages generally have lower rates than 30-year loans, and you’ll have higher monthly payments but pay your home off in a portion of the time. Mortgages with a fixed interest rate may be a couple of percentage points higher than an adjustable rate loan. You can lower your mortgage rate if you’re willing to pay points at closing. You may also find that lenders will offer different rates depending on whether you’re buying a house as an investment property or as a place to live.