Mortgage rates are at their highest level in 20 years, having surpassed the 7% mark and cooled down the housing market in the process. The Federal Reserve has this year in an attempt to combat and is expected to raise the benchmark interest rate a sixth time at its November meeting. 

Higher interest rates have significant implications for home buyers, especially as home prices remain sky-high. Higher  -- even when they increase by only a few tenths of a percentage point -- can add tens of thousands of dollars over the life of your loan. Higher rates shouldn't discourage you from buying a home, however. Even though rates have climbed fast, this could still be a  because if rates continue to increase, it's advantageous to act sooner than later. 

Mortgage rates have more than doubled since the end of last year in "one the largest and fastest increases ever seen," said Greg McBride, chief financial analyst at CNET's sister site Bankrate.

Here's everything you need to know about mortgage rates and how they work. 

What is a mortgage rate?

Your rate is the percentage of interest a lender charges for providing the loan you need to purchase a home. The interest helps cover the costs associated with lending money -- and there are multiple factors that determine the rate you're offered. Some are specific to you and your financial situation and others are influenced by macro market conditions, such as the overall level of demand for loans in your area or nationwide.

What factors determine my mortgage rate?

The factors that most often determine a mortgage rate are your credit score, the property's location, the size of the down payment, the terms of the loan and . 

"A lot of mortgages are [paid back in 360 payments] over 30 years. Shorter-term loans, like 10, 15 or 20 years have lower interest rates," says , president and founder of the predictive credit tech company TrackStar. "A larger down payment means a lower interest rate; if a homebuyer can make the 20% down payment, that's great, but if not, lenders will usually require the buyer to purchase : private mortgage insurance."

In addition to the loan term, the loan type will impact your interest rate. Some loans have a fixed interest rate for the entire life of the loan, while others have an adjustable rate -- which could result in significantly higher payments down the road. 

Current mortgage and refinance rates

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. The above table summarizes the average rates offered by lenders across the country. 

What credit score do you need to get a mortgage?

Most conventional loans require a credit score of 620 or higher, but  and other loan types may accommodate lenders with scores as low as 500, depending on your down payment. If you have a high credit score, you may be offered a lower interest rate and more modest down payment. before applying for a mortgage can save you money even if you already qualify are based on an amortization schedule: You'll for the life of the loan even though the generated interest will be highest at the beginning of the loan and will taper as the principal decreases. (Your amortization schedule will show how much of your monthly payment goes to interest and how much pays down the principal of the loan.) Ultimately, most borrowers appreciate the convenience of a fixed, predictable monthly payment. 

What else can impact my rate? 

Getting a good mortgage rate has to do with building credit but also managing it well, including saving for a down payment and keeping additional savings on hand to cover unexpected expenses. 

In most cases, you don't want to stretch so far with your down payment that you are left without Buy Verified Cash App Account - SubmitVCC.Com reserves when you move into your home, and keeping some liquid savings may help your lender's confidence in your ability to pay back the loan, potentially lowering your rate.

"Banks are very keen on making sure that borrowers have sufficient savings in reserve post-closing. A good rule of thumb is six months of mortgage/tax and insurance for loans under $750,000 and 12 months for jumbo loans," says , an executive mortgage banker at Connecticut-based William Raveis Mortgage.

Keep in mind that credit scoring services like adjust your credit based on mortgage inquiries; Lotz has a good piece of advice for those who are for the best rate at different lenders.

"The allows multiple mortgage inquiries within a 10-day period to be counted as one," says Lotz. "This allows a borrower to compare offers and rates from different lenders, but borrowers need to make sure they are within that one-day window, otherwise their scores will start to go down from excessive inquiries."

Shopping mortgage rates

Mortgage lenders often publish online their rates for different mortgage types, which can help you research and narrow down which len to rush the process.

"The best rate [should be considered] -- but as important, the best service and with a reliable lender who can close the promised rate," says Cohn. "It's one thing -- especially right now -- to get quoted a rate. It's a very different matter of closing it in a timely fashion."