30-year Fixed Rate Mortgage - Advantages and Disadvantages A 30-year fixed rate mortgage gives consumers the opportunity to borrow money on a long-term basis. They do this without having to worry about the change that might occur in fixed rate mortgage interest rates or payments of such. Because the interest of a 30-year fixed rate mortgage is amortized over a longer period, the monthly payments for this are lower than those on 15-year loans. But even then, interest-only mortgage rate programs are made available to borrowers who want to avoid incurring penalties when taking large equity sums. Below are some interest-only mortgage rate programs made available to you: One Month Libor Loan - The interest-only mortgage rate of this loan is the sum of the LIBOR index plus a margin of 0.125%. Because the initial interest rates and monthly payments are lower, a balloon payment mortgage is paid off with one large payment at the end of the loan term. Balloon payment mortgages are called such because borrowers who are on this type of loan are usually set up for a "balloon" payment at the end of their loan term. After about a year, the new interest rate of an adjustable rate home mortgage will either rise or fall, depending on the movement of the lending company's prime rate. Knowing whether or not an adjustable rate home mortgage is right for you depends on your income status and the type of adjustable rate home mortgage payment you plan to make. Length of Second Mortgage Loans Second mortgage loans have varying lengths with which they are eventually paid off. Some second mortgage loans may last for as long as 15 or 20 years. Other second mortgage loans only require one year for repayment. When you're thinking of taking on a second mortgage loan, you will need to know what term best suits you. Bank rate mortgages are moved by several factors that are different from but are somehow connected with each other. Not surprisingly, one of these factors that affect the movement of bank rate mortgages is you - the consumer. Bank mortgage rate money come from any number of sources. Bank mortgage rate money may come from deposits at banks and brokerages.