Having a good credit history is the best way to get a low interest loan. Having late payments, too much outstanding debt, or too many inquiries into your credit history can all affect your rating. If you know that you will be looking for a loan in the future, start now to repair your credit rating. Six months of stellar history can work wonders on a bad credit score.

Another way to drive down the interest rate is to have a large down payment. The lower your loan to value percentage, the more likely the lender will give you a low interest loan. A down payment makes you a better investment and less risk. If you are willing to put your money in up front, lenders suspect you won't default on the loan in the end.

The longer the term for borrowing money, the higher the interest rate typically runs. To get a low interest rate loan, squeeze the terms into the smallest possible number. Cutting the term from a 30 year fixed rate to a 15 year fixed rates could save you as much as a full percent in the interest rate. The payment may seem a little higher, but the amount you make up in interest will be mind boggling. The savings could reach will into the tens of thousands.

Finding a low interest loan is still possible, even in a climate of rising interest rates. It takes some pre-planning, some patience, some personal investment, and some negotiation skills, but the benefits far outweigh the costs.

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