Once an individual or couple has passed that first hurdle -- getting approved for a home loan -- the next step is securing a good mortgage rate. Without a good mortgage rate, a mortgage can quickly become unaffordable. Finding a good interest rate for a housing loan boils down to improving financial health, shopping around, and adopting the most cost-effective loan. Individuals who can do this are more likely to adopt a mortgage loan that they can afford -- even if they end up with temporary income problems.

Improving Financial Health

People with better financial health get the lowest interest rates. If a person has a credit score over 750, he or she is likely to get the best interest rate for mortgage payments. Similarly, having little debt and making regular payments on time will make it easier for individuals to get a low interest rate for mortgage payments. Because mortgage lending rates are determined in part by risk -- or the amount of risk that the bank takes when offering the mortgage to the borrower -- banks are likely to give lower mortgage rates to those who are most likely to pay.

Shopping Around

Like anything else, it's best to shop around before choosing a mortgage rate. Mortgage lending rates differ greatly from company to company. Some companies calculate risk differently, while others may be larger or more financially stable so they can offer lower rates. Potential home buyers can hire a broker to help them with the interest rate search or they can do the search themselves. They may start by getting housing loan quotes from websites or contacting different banks and mortgage companies for quotes. Regardless of how they shop around, the point is that potential home buyer must shop around if they really want the lowest rates.

Choosing the Right Mortgage

People who choose 30-year mortgages are more likely to pay higher rates than those who choose 15-year mortgages. Similarly, people with variable rate mortgages may start out paying lower interest rates, but those rates may skyrocket when the economy improves.

Individuals must decide for themselves what mortgage is best for them. Some home buyers may need 30-year mortgages and, if they do, they should purchase them. However, they must realize that their mortgage lending rates will be higher.

To obtain an affordable home, individuals must consider interest rates. However, there are a number of factors that determine interest rates. For this reason, home buyers should be careful not to rush through the process. Instead, they should take the time to compare rates, talk with brokers, real estate agents or mortgage companies and make their own decisions about the kinds of mortgages they can afford.