When considering home loans, couples and individual buyers should understand how mortgages are handled from the bank's perspective. This will make it much easier to lock in better mortgage rates, as by understanding how rates are set for a given person, it's fairly easy to take a few crucial steps to keep them limited.

Some factors that affect rates for home loans aren't directly controllable, but most can be controlled to some extent. The type of mortgage and the agreement's terms will certainly affect available rates for an individual or couple. Fixed mortgage rates are the most popular option, especially since widespread media coverage of the housing market collapse drew attention to inherent flaws in variable rates. Fixed mortgage rates will vary depending on the length of the mortgage. Longer mortgages generally have higher rates, although monthly payments are lower due to the length of the home loan.

The overall housing market will also have an impact on an individual's mortgage rates. Prime rates are set by considering 10-year treasury bonds and the supply and demand of the housing market as a whole. In the years following the collapse of the housing market, mortgage rates have decreased significantly, as banks are trying to provide incentives for new homeowners and for homeowners who want to refinance. The downside of this is, of course, that a poor housing market limits the resale value of properties. A poor economy can also eventually make it more difficult for some buyers to find loans, as banks are less willing to take risks on buyers with poor or underdeveloped credit ratings. In any case, the prime market rate is extremely important in setting rates for individual home loans.

There are a number of personal factors that can affect mortgage rates for home loans. Credit is probably the best known of these factors. Buyers with large amounts of revolving credit may find it difficult to lock in low fixed mortgage rates. Age can also be important when combined with term length, although this is typically a more important factor in deciding whether to offer a mortgage in the first place.

By comparing rates and by choosing an appropriate length, buyers can control mortgage rates. A full understanding of home mortgage policy terms and rates can be a buyer's best tool in choosing between several home loans.