Interest-only mortgages have payment periods based on adjustable rate mortgages. This however is not always the case. Interest-only mortgage payment schedules are also offered in fixed rate mortgages as well. Interest-only mortgages have also gone mainstream so virtually anyone can borrow money with this type of loan. Most bank mortgage rate money comes from investors who comprise the collective term, "capital markets." These capital markets are where the purchase of debt instruments like bonds and bank rate mortgages are done. To attract investors, sellers of bank rate mortgages and bonds in these capital markets compete with one another. One of these balloon payment mortgage products is the 30-year loan that has to be paid off in five or seven years. Usually, the interest rate of the 30-year balloon payment mortgage is lower than a normal 30-year fixed rate mortgage with due date of 30 years. Monthly payments of balloon payment mortgage are still amortized based on the 30-year term. Most consumers are hesitant to get house loans where the rates fluctuate with the changing interest rates of the market. Fixed rate mortgages are generally very affordable, especially when rates are low. Consumers of fixed rate mortgages are faced with having to choose between a 15-year fixed rate mortgage or a 30-year fixed rate mortgage. But despite this, there are some ways to circumvent the risks and increase your chances of landing a good investment in an adjustable-rate mortgage payment. Below are some questions you need to consider: - Is there a possibility that my income will rise up enough to cover higher adjustable-rate mortgage payments should interest rates go up? If you're planning to keep your home for only a short period of time, then an adjustable rate mortgage might be the best choice for you. Adjustable rate home mortgage rates are significantly lower than fixed rates, especially during the initial years of the loan term. Lower adjustable rate home mortgage rates means lower monthly payments, making it easy for people to qualify for a loan.