The mortgage interest rate of a 30-year mortgage is higher than that of a 15-year mortgage. Other alternative programs and payment plans for your loans can some difference on your mortgage interest rate. An adjustable rate mortgage initially has lower mortgage interest rates compared to fixed rates. So basically, the effect of economics on mortgage interest rates is also counteracted by the type of mortgage you choose to take. A percentage of the closing fee you pay on a mortgage goes to the mortgage broker's personal funds. This, along with a few more fees, stands as their salary. Another thing is that mortgage brokers can be more resourceful than banks. Because mortgage brokers do not work for only one company, they have more access to mortgages and loans. Another example is when one of your friends got a take over mortgage for $80,000 with 6.5% fifteen years ago. The take over mortgage loan balance left is $70,000. This means that the property is now worth $160,000. For a take over mortgage, you only need to come up with $90,000 plus money for closing costs. 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. The disadvantages however include significantly higher monthly payments, especially when compared with 30-year fixed rate mortgages. For most people, refinancing a home only makes sense if the new home mortgage rate is 2% lower than your current rate. This idea no longer applies in today's market though, where loan terms are no longer limited to 30-year fixed rate mortgages. Lenders today are offering fixed rate mortgages with 15, 20, or 30 year terms. " These capital markets are where the purchase of debt instruments like bonds and bank rate mortgages are done. To attract investors, sellers of bank rate mortgages and bonds in these capital markets compete with one another. This is done by providing their consumers with a variety of products, such as bonds and bank rate mortgage.