But at the end of five or seven years, a large amount of the balloon payment mortgage is due. To explain further on this, let's say you have a balloon payment mortgage with an interest rate of 7.5%. After seven years, an approximate 92% of the original balloon payment mortgage amount is due. For example, the amount of the balloon payment mortgage is $200,000. In today's market, the mortgage interest rates are much lower than they were in the mid-1980s to the 90s. But within the next year or two, financial experts have come up with predictions mostly outlining the rise of mortgage interest rates. A sad fact however, is that with mortgage interest rates, there are no certainties and no guarantees. " Based on his given definition, we can therefore safely conclude that an amortization mortgage is an amount of money that is to be paid off by a certain date. Paying off an amortization mortgage is usually done in equal monthly installments. One example of an amortization mortgage is one that involves your car loan or your home loan. 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. The other half of the coin is the home buyers. These two clients of bank rate mortgage markets take opposing sides when it comes to investments. This means that home mortgage rates of home equity loans are directly affected by the cut backs on fed rates. However, home mortgage rates for home equity loans have always been perceived to be higher than the home mortgage rates of other loan types. Find a home with the Lowest Home Mortgage Rate Once you understand the advantages of each type of mortgage - whether a fixed rate or adjustable or a home equity loan, the next step of the process is finding yourself a home. Some companies also offer second mortgage loans with variable rate payments. These variable rate second mortgage loans periodically experience rate adjustments. A variable rate second mortgage loan might be cheaper than a fixed rate payment in the long run. But this is only provided if the interest rates of second mortgage loans go down.