Payment Calculations for Second Mortgage Loans Before taking on second mortgage loan, be sure that you understand a couple of things first. Know how much your monthly payments will be for that second mortgage loan. Moreover, it is also helpful if you also have an idea as to where those second mortgage loan payments will cover. At the second part of an 80 20 mortgage loan is for 20 percent of the home's price. The closing costs of an 80 20 mortgage loan are something that the buyer is expected to come up. According to Anthony Hsieh, president of HomeLoanCenter.com, an 80 20 mortgage loan "allows people to buy without a down payment. In single loan term, the amount you pay to cover the mortgage interest rate cost is more often than not more than what you paid for your house. Reducing even a fraction of your mortgage interest rates can save you a great deal of money on your mortgage. The rise and fall of mortgage interest rates have become erratic during the past 20 years. 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%. The margin will remain fixed throughout the term of interest-only mortgage rate loan. However, with the index value adjusted every month, your interest-only mortgage rates may also be changed. Some types of adjustable rate amortization mortgages offer payment caps than interest rate caps. This basically limits the increase amount of your monthly payment on your amortization mortgage and makes your loan negatively amortized. If interest rates rise to the point that the interest due cannot be covered by your monthly amortization mortgage payment, the unpaid amount will be added into the loan balance, increasing it over time. This conversion from a variable rate mortgage to fixed rate can be done any time without penalties. Every 3 months, ING Direct variable rate mortgage interest rate will be adjusted to reflect their prime rate. Variable Rate Mortgage by CanEquity Mortgage Canada The variable rate mortgage of CanEquity is based on a five year term.