The mortgage business is highly competitive, and the methods for awarding mortgages is is not random at all but is based on mathematics and probability.  It is basically all about risk management.  The higher the risk of default of an applicant, the higher is the interest rate and of course vice-versa, the lower the risk, the lower the mortgage rate.  If the risk is too high for the mortgage company, they will simply deny the mortgage.

Mortgage companies generally published interest rates for their mortgage products.  However, this can go up or down based on adjustments that are made in each individual case.  Such adjustment can give you a higher rate or a lower rate depending on the circumstances.  Ultimately they are all aimed at identifying risk.

Major Factors that go into the Best Mortgage Rate

The following table shows some common factors that go into your mortgage rate calculation.  Getting the best rate means to manage these factors wisely for your particular case.