The interest rate will be one of the biggest factors in determining the cost of your mortgage. And a bank rate that is still 30-year fixed will make a 20-year fixed mortgage feel like it has a lot more value for a little bit more money.

That said, fixed-rate mortgages tend to have their discount points reduced over the life of the loan (this page will give you all the details).

A 30-year mortgage with a fixed interest rate would mean your mortgage payment would end up as a 15-year mortgage, but a 20-year fixed with a variable interest rate would result in a 30-year mortgage that cost 20-years, or 15-years with a 30-year loan term.

The closer you can get to the lower of the two, the better the bargain you will get on your mortgage payment.

In terms of types of mortgages, if you have a 20-year fixed mortgage you are probably safe to go with the subprime 2.5% or below rates.

If you have a 30-year fixed mortgage, you are at higher risk of getting a high-rate teaser mortgage or a higher rate without a down payment. That being said, a small percentage of clients do opt to get a teaser mortgage, so always be aware of the risks you’re taking when taking a loan of this type.

Here are some of the factors to consider when looking at mortgage rates.

Established Interest Rate

Mortgage rates are generally driven by three factors: the interest rate the banks pay on the home, the interest rates that you can get on the home or the interest rate the banks are willing to offer you in a loan.

An interest rate is a relatively stable interest rate. But when that interest rate changes the value of your home in a way that could make your home less valuable, the value of the mortgage decreases.

The rate you receive from your lender is really the “reference rate” for the overall mortgage market.

The higher the interest rate your lender is willing to offer you, the more home you can get on a loan with this particular lender.

Market Value

This is basically how much the value of the home currently costs you. If the market value of your home increased by 3% last year, the market value of your home will increase by the same 3% this year.

Once again, that is the interest rate you get on your mortgage. The higher your interest rate, the more money you can put on the mortgage, even if your home value only decreases by 1% per year.

Mortgage Amount

The total amount you have to borrow. This is not in a fixed amount, but instead goes up when the interest rate increases. If you take a mortgage of $200,000, the mortgage interest rate will be 30-years, and the total amount you will have to borrow will be $245,000.