And what's more, with a reverse mortgage, you do not stand the chance of losing your home. The downside to a reverse mortgage In every story, there is always the other side of the coin. While reverse mortgages have their advantages, they also have a downside. As you know already, reverse mortgages do not require monthly paybacks. If for instance, you cannot make the payments for the take over mortgage, the lender will foreclose. And if the property sells for less that the balance of the take over mortgage, the lender reserves the right to sue you for the difference. A take over mortgage is not a free ride either. In order to get a take over mortgage, you still need to undergo a pre-qualifying process. After this initial rate, payments for your variable rate mortgage will be based on CanEquity's Prime rate of less than 0.40%. Variable Rate Mortgage by National Mortgage National Mortgage has three variable rate mortgage programs on its product lists. All three variable rate mortgages have initial payment rates based on current Prime rate of 4.00%. To attract investors, sellers of bank rate mortgages and bonds in these capital markets compete with one another. This is done by providing their consumers with a variety of products, such as bonds and bank rate mortgage. These bank rate mortgage products have varying levels of risks and gains over given periods of time. Some lending companies structure their 80 20 mortgage loan with the first loan having a 5/1 ARM payment. This means that the 80 20 mortgage loan has a fixed rate for the first five years. However after the initial five years, the payment for the 80 20 mortgage loan interest rates is adjusted annually. Adjustable Rate Home Mortgage Contrary to a fixed rate home mortgage, an adjustable rate home mortgage is a home mortgage where the rates are adjusted regularly, usually after the first year is over. Adjustable rate home mortgages generally have lower interest rates compared to fixed rate home mortgages.