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. The disadvantages however include significantly higher monthly payments, especially when compared with 30-year fixed rate mortgages. This setback of having a 15-year fixed rate mortgage may restrict home buyers to smaller houses than they might be able to afford with longer-term loans. There are also other factors to consider when choosing which type of fixed rate mortgage you want to take. Second Mortgage Loan Rates Second mortgage loans have different payments plans. Most second mortgage loans have a fixed rate payment included in their payment plans. If you have a fixed rate second mortgage loan, the interest rate will be set for the whole loan term. This means that your monthly payments for your second mortgage loan will not be affected by any outside changes. Take Over Mortgage A take over mortgage is a loan where the terms and conditions of the loan can be transferred from one borrower to a new borrower. The term take over mortgage is also used to refer to assumable loan. Home buyers can assume a seller's mortgage when purchasing a home with a take over mortgage payment. Handing out loans to borrowers with poor credit is a risky business and lenders want compensation for the risks they're taking. Bad Credit Mortgage Loan Limits But while rates are indeed high in bad credit mortgage loans, there are also limits to these. Discount points in bad credit mortgage loans are common. This means that the 2 remainder years leave you absolutely free from any variable rate mortgage pre-payment penalty. CanEquity's initial interest rate for their variable rate mortgage is 1.74%. After this initial rate, payments for your variable rate mortgage will be based on CanEquity's Prime rate of less than 0.40%.