So, if you were to get a second mortgage loan of $10,000 with an eight-point fee, then you would have to pay $800 in "points." Second mortgage loan companies may charge you in varying number of points so if it might be helpful if you do a comparison first. Second Mortgage Loan Rates Second mortgage loans have different payments plans. Because take over mortgages allows the consumer a chance to assume a loan with lower interest rates, take over mortgages became popular. Take over mortgages experienced an all time high in the 1970s and 1980s when interest rates soared. Existing mortgages had interest rates at 5 percent to 7 percent but when the rates rose, the original percentage rose also, forcing a pay out of 10 percent to 15 percent in interest on deposits. These people may be able to borrow money on loan programs where little or no down payment is required. But to do so, they would have to provide a private mortgage insurance or PMI. If you want to avoid PMI, you can take an 80 20 mortgage loan. With an 80 20 mortgage loan, you get a "piggyback loan" or second mortgage loan that is used to back up the first mortgage. But as far as details are concerned, amortization mortgages just escape those who don't have a solid financial education background. Amortization Mortgages: What the experts say According to Philip Russel, assistant professor of finance at Philadelphia University, an amortization mortgage is "the systemic payment plan - such as a monthly payment - so that your loan is paid off over the specified loan period. The name interest-only mortgage is misleading. If truth be told, there is no such thing as an interest-only mortgage. In an interest-only mortgage, you will still have to pay for the loan principal. When you get an interest-only mortgage, what you're really getting is an interest-only payment method which you can combine with other traditional mortgage types. A sad fact however, is that with mortgage interest rates, there are no certainties and no guarantees. No one can really tell whether or not mortgage interest rates will rise over a period of time. The current mortgage interest rate that you are charged right now is something that your banker or broker cannot control.