Most homes today have down payments that are more than what the buyer can afford right then and there. The solution for this? A mortgage. The Difference Between a Bank Loan Officer and a Mortgage Broker Loan officers at a bank or a credit union are employees working to sell and process mortgages and loans for mortgage customers or home buyers like you. These forced buyers to use take over mortgages so they could assume loans with lower rates. If you want a take over mortgage, remember that if a deal sounds too good to be true, it probably is. Sellers offering cheap take over mortgages are also offering something of significant value. With take over mortgages, sellers are likely to charge more for their houses. Because of its low initial payment, a lot of people like to take on a variable rate mortgage. Financial reports suggest that the risks you assume in taking a variable rate mortgage are considerable but the gains are even more so. This is because variable rate mortgages may turn out to be cheaper than fixed rate mortgages in the long run. Thus the longer you've been paying for an amortization mortgage, the lower the interest becomes. Negative Amortization Mortgage: Pros and Cons Payment plans for an amortization mortgage are usually based on adjustable rate payment loans. Adjustable rate amortization mortgages are loans where the amount you pay depends on the rise or fall of interest rates. This process involves digging into your finances, your income, assets and liabilities, the whole gamut. If your finances come up short of the requirements, your application for a loan will not be accepted. A bad credit mortgage loan works in a completely different way. There are no pre-qualification requirements when you apply for a bad credit mortgage loan. Lower interest rates mean lower monthly adjustable-rate mortgage payments. Higher interest rates mean higher monthly adjustable-rate mortgage payments for you. There is no middle ground. Adjustable-rate mortgage payments are basically a trade-off - you exchange more risk for lower rate with an adjustable-rate mortgage payment.