If interest rates rise to the point that the interest due cannot be covered by your monthly amortization mortgage payment, the unpaid amount will be added into the loan balance, increasing it over time. For instance, the payment cap of your amortization mortgage is 7.5%. With a monthly amortization mortgage payment of $1,000 and rising interest rates, your new payment would normally be $1200/month. This again points to the "risk" part those lenders of bad credit mortgage loans are taking. This might be a good thing for borrowers on bad credit mortgage loans. Larger down payments usually mean smaller monthly payments for your bad credit mortgage loan. This also means that you can slowly and steadily reduce your bad credit mortgage loan balance, providing for better affordability. With an 80 20 mortgage loan, the home buyer actually takes out two loans. The first part of an 80 20 mortgage loan is for 80 percent of the purchase price. At the second part of an 80 20 mortgage loan is for 20 percent of the home's price. The closing costs of an 80 20 mortgage loan are something that the buyer is expected to come up. Since reverse mortgages do not involve any monthly payments, you not have to go through these tedious prequalification procedures. Qualifying for a reverse mortgage is easy and hassle-free. There is no minimum income required and no monthly repayments. And what's more, with a reverse mortgage, you do not stand the chance of losing your home. Rates of adjustable-rate mortgage payment are adjusted on a regular basis, usually after the first year is over. This means that the interest rate and the amount of the monthly adjustable-rate mortgage payment may vary, going either up or down. With adjustable-rate mortgage payments, there is little chance of you knowing what your future monthly payment would be. The amortization period for this type of fixed rate home mortgage is longer and the monthly payments are lower. One drawback, however of this home mortgage is its high interest bill and slow equity build-up. 15-year fixed rate home mortgages attract borrowers because of its relatively shorter amortization period.