With a variable rate mortgage interest rate of less than 0.60% for a full five-year term, ING Direct variable rate mortgages are among the top-sellers. As an added bonus, consumers who buy their variable rate mortgages from ING Direct have the option to convert their variable rate mortgage into a fixed rate mortgage of 3 years or more. Whichever is the case, interest-only mortgage rates are always tied to the libor index. The libor index of interest-only mortgage rates stands for London Interbank Offered Rate. LIBOR is the interest rate offered by a specific group of banks in London for matured U.S. dollar deposits. Choosing libor index as basis for your interest-only mortgage rates entitles you to a number of benefits. This is due to the fact that lenders sometimes decide to extend a loan provided that your current income is steady and your adjustable-rate mortgage payments for the first year are up-to-date. Another advantage of having an adjustable-rate mortgage payment type of loan is that it could turn out to be less expensive in the long run. This allows 15-year fixed rate mortgage borrowers to build equity much quicker. And with a 15-year fixed rate mortgage, the overall interest bills are low - at least, considerably lower than those of longer-term loans. Interest rates of a 15-year fixed rate mortgage are also lower than 30-year loans. On the other hand, if economy weakens, mortgage interest rates go down. In today's market, the mortgage interest rates are much lower than they were in the mid-1980s to the 90s. But within the next year or two, financial experts have come up with predictions mostly outlining the rise of mortgage interest rates. Lower adjustable rate home mortgage rates means lower monthly payments, making it easy for people to qualify for a loan. However, if you expect to keep your house for a bit longer, then it is advisable if you look into the market for fixed rate home mortgage rates. Adjustable rate home mortgage rates only work if you stick with it for a short while.