Rates change every day, sometimes during the day. The interest rate you qualify for depends on your credit score, the type of loan you want, loan to property value, and other factors. The best mortgage professionals always discuss needs and financial situation before quoting rates.

Interest rate market conditions can affect what type of mortgage you choose as well. Considering we are currently in a rising rate market (while rates fluctuate daily there is a general upward trend) a fixed rate mortgage is generally preferred over an ARM. In the past while rates were on a downward trend borrowers with an adjustable rate mortgage could take advantages of not only lowering rates, but saved on closing costs because they did not have to refinance to get the lower rates.

When comparing programs from different brokers, make sure you are comparing the loan programs with the exact same terms. Always obtain a good faith estimate (GFE) and a truth-in-lending statement (TIL) to help you determine what is best for you.

The type of mortgage that you choose may also depend on your credit. If your credit is poor and you are in the process of cleaning up your credit then a shorter term ARM may be best for you. You can take advantage of lower rates than a fixed rate while you clean up your credit and then refinance later when your situation has improved. If you have excellent credit than this would not be a factor.

Real property investors often choose loan programs with low monthly payments, for if the monthly mortgage payment is smaller than the rental income, the property has a cash inflow, which is almost always preferred to one with monthly cash deficit. Some of the loan programs that offer low initial monthly payments are Adjustable Rate Mortgages (ARM), Option ARM, Interst-Only loans, Hybrid mortgages, and Balloon mortgages.

Credit rating is very important when applying for a loan. Higher scores typically means less paperwork. The lower the score, the more documentation you will need to close. In addition the higher the score the higher LTV or loan-to-value you will qualify for. If you are unhappy with your credit rating then seek out a credit repair company to help with the negative items on your cedit report. In most cases your mortgage broker will be able to recommend a good company.

Another note about your credit rating; if your credit card company pulls credit on you like they normally do once a year and find that your scores have dropped, they can raise the interest rate on your card at their discretion. It's really important to keep those scores as high as possible.