Lower mortgage rates usually means higher points paid on your loan. The same goes for closing costs, which are fees that the lender must pay. Higher closing costs paid to them means lower mortgage rates. However, if you do not wish to pay for all the closing costs upfront, the lender will raise your mortgage rate in order to cover it. A second thing that affects mortgage refinancing is the borrower's loan qualifications and credit line. A positive credit history would spell good news for mortgage refinancing. However, if credit is bad or if the relationship between debt and income is skewed, then mortgage refinancing is not the right option. With balloon payment mortgages however, the monthly payment only comprises of interest or a combination of interest plus a small amount for the principal. No matter the case, when the balloon payment mortgage term expires, the balance is due in full. Most second mortgages are commonly balloon payment mortgages. And this is usually done by raising interest rates on bank rate mortgages. Then again, bank rate mortgages are never that simple. The market makers of bank rate mortgages do not have the investors alone as their client. The other half of the coin is the home buyers. These two clients of bank rate mortgage markets take opposing sides when it comes to investments. 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. Lower monthly payments on 30-year fixed rate mortgages give consumers an extra resource which they can pour into other worthy investments. On the other hand, this could also cause a slight disadvantage for 30-year fixed rate mortgage borrowers. As opposed to bank officers, mortgage brokers are not employees of the lending companies they work for. Instead, they work independently as free lance agents who are on the look out for borrowers looking for a good mortgage. So what? Looking for a home mortgage usually involves you, your money, and a bank officer or a mortgage broker.