For borrowers with bad credit, the limit is usually four or five points on their bad credit mortgage loan. Larger Down Payments for Bad Credit Mortgage Loans Like interest rates, down payments for bad credit mortgage loans are higher than regular loans. This again points to the "risk" part those lenders of bad credit mortgage loans are taking. Bank mortgage rate money come from any number of sources. Bank mortgage rate money may come from deposits at banks and brokerages. Most bank mortgage rate money comes from investors who comprise the collective term, "capital markets." These capital markets are where the purchase of debt instruments like bonds and bank rate mortgages are done. Some prefer 15-year fixed rate mortgages because of the shorter duration. Other consumers choose 30-year fixed rate mortgages because the payments are considerably lower than the former. Each type of fixed rate mortgages certainly has its own advantages and disadvantages. Here are some of them. 30-year Fixed Rate Mortgage - Advantages and Disadvantages A 30-year fixed rate mortgage gives consumers the opportunity to borrow money on a long-term basis. There are countless other reasons why people go for mortgage refinancing when buying a new home. However, it should be noted that not everyone benefits from mortgage refinancing. For homeowners with second mortgages, mortgage refinancing may backfire. The same goes for those people with a lot of debt or those having trouble paying bills on time. Below is a short list of these interest-only mortgage rate benefits. Benefits of Interest-Only Mortgage Rates Interest-only mortgage rates allow you greater purchasing power. Because interest-only mortgage rates have lower costs compared to fixed rates or other types of loans, you are afforded extra money which would have been spent on high monthly payments. Other mortgages require a person to make a down payment when buying a home. As years go on, they use their income to pay back the money they borrowed in making the purchase. This decreases their debt and increases the value of their home. With a reverse mortgage, everything works in the reverse. You have your home.