Mortgage rates are at historical lows this year. In the last five years mortgage brokerages have seen a boon for people refinancing and buying new homes. But home value appreciation has exceeded inflation and homes are also more expensive than they have ever been before. For this reason it is especially important now to shop around for the lowest mortgage rates you can get.

To assess the lowest rate you can get on your mortgage a broker will run a credit check using your social security number and that of your co-borrowers typically your spouse. Another important factor in addition to your credit score is your debt to income ratio. Even if you have particularly good credit, if you are carrying a lot of debt your loan will be perceived as more risky by the lending institution and it may limit the amount you can borrow.

The lowest mortgage rate you can get for your loan will only be realized if you strike while the market is ripe for purchases. As recently as the early 80’s rates at more than twice today’s going rate were considered excellent. Buying a home is a big step away from renting that requires more financial stability. However building equity in your home can be invaluable for financing loans in the future and giving you the support you need to take care of your family.

To get the lowest mortgage rate possible you will want to consider paying points on your mortgage. Points are typically equal to one percent of the total mortgage. By paying points you can get your interest rate lowered by as much as a couple percent. Typically this is not an option for first time homebuyers because it is difficult enough to come up with the money for a down payment.