What moves your mortgage rate, and which parts you control

Layer one: the market

The overall level of mortgage rates moves with the broader bond market and the economy. You cannot change it. What you can control is timing within your own plans: when you apply, when you lock and how long a lock you ask for.

The CFPB's rate explorer points buyers to Freddie Mac's weekly survey of average 30-year and 15-year rates as a way to see the general level. That is useful context, but it will not match your quote, because the survey reflects a typical borrower and loan.

Layer two: your file

The CFPB's rate explorer lets buyers see how changing a few inputs shifts the range of offers. It focuses on four personal factors.

Credit score. The CFPB says applying with a higher score generally means you are offered lower rates and have more lenders to choose from. A lender can tell you whether a modest improvement in your score would change the price it quotes.

Down payment. A higher down payment typically lowers the rate and also reduces the amount you borrow. On conventional loans, the down payment also determines whether you pay private mortgage insurance and how much.

Loan term. Shorter terms generally carry lower rates because the lender's risk is lower. The trade-off is a higher monthly payment, though more of each payment goes to principal.

Loan type. The CFPB notes that VA, USDA and FHA loans can offer lower rates for people who qualify, and that FHA can cost less than conventional for borrowers with lower scores and smaller down payments. The full comparison has to include each program's insurance or guarantee fees.

Other features of the loan matter too, including whether the rate is fixed or adjustable, the loan amount, the type of property and whether you will live there.

Layer three: your choices on price

Some rate differences are trades rather than penalties.

Points. The CFPB explains that points lower your rate in exchange for paying more at closing. Lender credits do the reverse: they cut your closing costs in exchange for a higher rate. Whether either makes sense depends on how long you keep the loan.

Lock period. A rate lock holds a rate for a set time. The CFPB says locks are typically available for 30, 45 or 60 days, sometimes longer, and can be expensive to extend. Ask each lender whether a longer lock changes its price. The CFPB's own rate examples assume a 60-day lock, a reminder to check what each quote assumes.

Lender. Two lenders can price the same file differently. Shopping is the one factor that costs only time.

What you can change, and how fast

Credit is usually the most productive place to start. The CFPB's guidance on scores puts on-time payments first and recommends keeping card balances low relative to limits. Paying down card balances before applying can help once the lower balances are reported.

Comparing offers fairly

The CFPB recommends comparing Loan Estimates rather than advertised rates. To make the comparison fair:

• ask every lender for the same loan amount, term, type and down payment
• request quotes on the same day, since prices can change daily
• ask for zero points as a baseline, then any point options separately
• compare the APR and the total in Section A, origination charges, alongside the rate
• confirm the lock period behind each quote

A lower rate with higher charges may or may not be the better deal. It depends on how long you keep the loan.

The bottom line

Your rate starts with the market, which you cannot change, and then moves with your credit score, down payment, loan term, loan type and the price choices you make on points and locks. Work on credit early, decide your loan structure, then get same-day quotes on matching terms so you can see real differences between lenders.