When arranging the terms of a mortgage, it's important to pay attention to the interest rate. If you get a low interest rate, your loan will be more affordable and a larger share of your monthly payments will go toward building equity.

People in the market for a new home have had the advantage of historically low interest rates for a long time now. The average rate for a  30-year fixed rate mortgage has stayed below 5 percent for nearly seven years, according to Freddie Mac.

The Federal Reserve has only raised its rates five times since the Great Recession struck in 2008, but current plans call for another five rate hikes over the next two years. While mortgage rates remain low, they have been slowly but steadily increasing in recent months.

Buyers who are currently shopping for a new mortgage, along with homeowners who purchased their home when rates were higher, can employ a few different options to knock down their mortgage rates. Doing so can easily save you thousands of dollars over the life of the loan.

Before you apply for a loan, you should make sure you have a good credit score. Sean Williams, writing for the financial site The Motley Fool, says your rating will be strengthened if you have a history of on-time payments and accounts in good standing. Lenders will also be more assured that you are capable with your finances if you don't make any large purchases or change jobs during the mortgage process.

Take the time to shop around and compare rates. You might find that some lenders are offering considerably lower rates than others.

If you have enough money to spare, consider making a larger down payment. Jonathan Smoke, writing for the National Association of Realtors, says lenders are often willing to give you a lower rate if you can cover a significant share of the purchase price upon closing. A larger down payment also has the added benefit of bringing down your monthly payment.

Buyers have the option to pay points at the start of the mortgage to reduce the interest rate. Ben Lane, writing for Housing Wire, says "buying down the rate" adds an extra fee to the closing costs, but also lets you save money in the long term.

Consider your plans for the future before deciding to buy down the rate on a mortgage. This purchase often adds several thousand dollars to the closing costs, so you'll only recoup the funds if you stay in the home for several years. Otherwise, the lump sum payment will exceed the money you save on interest.

One simple way to get a lower rate is to simply ask a representative at the lending institution for one. Williams says the bank may be happy to retain your business by matching a rate offered by a competitor. Jennifer Openshaw, writing for MarketWatch, says you can also negotiate fees with your lender.

Another easy option for bringing down your mortgage is to set up automatic mortgage payments. You'll need to make sure your bank account has enough money at the start of the month to cover the payment, but the convenience of the automatic withdrawal can result in a discount on your interest rate.

If you can handle a shorter loan period, you might want to eschew the traditional 30-year mortgage for a 10-, 15-, or 20-year option. This type of mortgage will naturally result in a higher monthly payment, but it also tends to come with a lower interest rate. You might consider refinancing to a shorter mortgage if rates have fallen significantly below what was available when you first bought your home.

Adjustable rate mortgages typically offer you a lower rate for a number of years, allowing you to build up equity more quickly. Of course, you'll want to be cautious with this type of loan. Williams says that when the "teaser" period ends, the sudden rate increase can cause a large increase to your monthly payments.

Similarly, hybrid mortgages can also offer you a temporary break on your mortgage interest rate. Smoke says that when rates are higher, lenders are more likely to offer mortgages that set a lower rate for a certain number of years.