If you look at mortgage loans you will find that they are pretty much consistent all across the board. The rates will be almost exactly the same at each company that you go to, so determining which will offer you a discount for whatever reason is vital. Of course, getting a discount shouldn’t discount shouldn’t take precedence over other factors such as early payment penalties or other terms that are uncomfortable. However, finding cheap mortgage loans can be as simple and easy as asking for them.

To find discount mortgage rates first determine if you qualify for the prime rates that are offered to those with good credit. Most mortgage companies start with a credit score of about 650 to even approve a mortgage and then 750 is about where they really start trying to earn your business. If you know what your credit score is, that will help you determine where to start. If your credit score is a little low than you may want to wait a few months before you begin applying for your mortgage to fix your credit. Even a little higher score may mean a much lower interest rate.

Another thing that can affect the interest rate that you get is other credit risk factors that aren’t based upon your past credit history. For instance, if you make $3000 a month and you have $1500 a month going out in credit card payments and other loans then you will be a higher risk than someone who has more available income. If you can, try to eliminate as much of your debt as possible before you go in and apply for a mortgage. This is commonly referred to as your debt to income ratio and having one at around 35% will get you the best discount rate for mortgages.

Down payment is another thing that will affect your interest rate, again because you represent a much less risk to lenders if you put a lot of money into your home. A down payment of 20 or 25 percent can often get you a discount mortgage interest rate especially if you ask for one. When buying a home, it’s always a good idea to have as large as down payment as possible, not only because you will get a better interest rate and have a much better of being approved, but also because you will save a lot of money in interest and already have some equity in your home.