We all want to get the lowest mortgage rates available. And for this, we have to make sure that all the mortgage options are looked upon before we proceed with our application.

One of the best places to start looking for good rates is from your bank. Being their client, they know your finances and can consider this to make you eligible for the lowest mortgage rates. Not only that, they can be more lenient when it comes to your application - they may not ask for additional requirements before facilitating your loan. Of course, it would be wise to check the rates of other banks just to make sure that you are getting the best deal. Once you have decided which offer is better, then it is time to choose which mortgage loan works best for you. Most financial experts say that you should take a low fixed rate mortgage over adjustable rate mortgage for the simple reason that the latter can only provide you with a low rate on the first few months. With fixed rate, you can lock the low interest rate on a longer term. This is a useful feature since inflations and other economic fluctuations cannot affect a pre-existing fixed term loan. However, an adjustable rate may work best for short term mortgage loans- especially when the market is down.

Since time is of the essence when locking rates, others opt for long term float down rate lock option or free float-downs in trying to get the lowest mortgage rates. With this option, you can lock a specific rate and, should the rates drop while your loan is being processed, you can get a better interest rate. Of course, this option has certain disadvantages and it takes a great deal of market study to truly understand its intricacies.