For instance, if demand for bank rate mortgages falls, a change needs to be done to attract investors again. And this is usually done by raising interest rates on bank rate mortgages. Then again, bank rate mortgages are never that simple. The market makers of bank rate mortgages do not have the investors alone as their client. 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. Adjustable Rate Home Mortgage Rates Home mortgage rates are sure to be affected more if you have an adjustable rate mortgage. This is because adjustable rate home mortgage rates depend largely on the changes in federal rates. Also, adjustable rate home mortgage rates are short-term interest rates like Treasury bill rates. It's just that rates might just be a little bit too high to give any room for savings or rates are not low enough to make mortgage refinancing worthwhile. Mortgage refinancing may also turn sour for buyers with good credit. Private mortgage insurance (PMI) and long loan terms can make mortgage refinancing a bad deal. To avoid this, an adjustable mortgage rate may help you get started on a lower mortgage rate, but if interest rates grow, your monthly mortgage payments will rise also. Fixed mortgage rates are usually higher than adjustable mortgage rates but they can save you money too, especially if the interest and mortgage rates go up. Home Mortgage Houses on sale today require down payments that are more than a renter can afford. So how do you own a home when you do not have enough savings to cover down payment costs? The answer is a home mortgage. A home mortgage is actually different from a home loan. A home mortgage is the contract that you sign in order to get a loan from a banking institution or lending company.