Although it’s quite easy to find the average mortgage rates available those aren’t necessarily the rates you will qualify for. Your particular rate depends on your particular financial situation including your financial assets, debt-to-income ratio, credit score and how much house you’re trying to buy. These things combine to form a risk assessment for the mortgage lender to use to decide if you are a good investment.

One thing that affects your rate is your FICO score. Your credit score is the most important factor actually. The higher your FICO score, the better your rate/ The reason for this is because it summarizes how well you take care of your debt as well as showing how much debt you can handle.

Another aspect is how much of your budget is going back out to pay off current debt. Generally lenders don’t want to see more than 36% of your budget paying off debt for student loans, credit cards, car loans or any other installment payments. However, your monthly income also includes child support, alimony and income from a second job.

Owning financial assets is a positive thing in most lenders minds. If you have assets such as a 401k, owning your car outright or a college savings plan mortgage bankers see these as a huge positive. This is because these all contribute to your net worth.

Finally, the house you want to buy plays a role in your mortgage. If the house is in good shape, in an economically growing area, and amongst other well selling homes then your home is a less likely risk to finance and therefore that mean you’ll likely get a better rate.

Ultimately, there are lots of factors that help a mortgage lender decide what kind of rate to give you. If you are unsatisfied with what you are offered try talking with your lender to see how you can improve your rating to get a lower interest rate in the future.