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When you are shopping for a home loan, you obviously want the best mortgage rate that is available to you. This is why it's important to talk about these three things with your mortgage broker to determine what is going to help you lower your mortgage rate:

A Fixed or Adjustable Rate: 

Talk to your mortgage broker about a fixed or adjustable rate. A fixed rate is going to have a set interest that you are going to pay throughout the life term of the loan. If this rate is low, then a fixed rate is obviously the best choice because this means you are paying the least amount of interest possible. If the interest rate is high, you may consider an adjustable rate. This is going to start you out with a small interest rate that is going to stay the same for a certain number of years, but will then become adjustable throughout the life term of the loan. In order for you to be comfortable with an adjustable rate, you will have to be sure that you are able to pay higher interest once the interest rates becomes higher at some point.

Points: 

There are positive and negative points that you can include on your home loan. Positive points means that you are putting a certain amount down on the loan that is going to lower the interest rate slightly. This is definitely beneficial if you plan on keeping this same home loan for a long time to come. However, if you don't plan on staying in this same house, then putting down extra just to lower the interest rate slightly is probably not in your best interest. You can also include negative points, which means that your mortgage broker will lower the initial costs, such as your down payment while you pay a higher interest. You should not do this if the amount you pay in interest is going to outweigh the amount that you put down to raise it. 

Special Programs:

It's important to never assume that you do not qualify for any special programs run by the government or other private corporation. Taking advantage of these programs can significantly reduce the amount of money that you put into purchasing a home. Special programs include the VA loan, which is when the widow of a veteran, a current veteran or a retired veteran can avoid having to put a down payment on a home, as well as receive lower interest rates. There are also first-time home buyer programs and programs that help those with poor financial situations, as well.

When you consider these three things, you should easily be able to receive a lower mortgage rate, which can make purchasing the home of your dreams that much more possible.