Shorter loans usually means lower mortgage rates and longer loans can cost you higher mortgage rates. Loans with a 20-year or 15-year note can allow you to save thousands of dollars on mortgage rate payments. However, this also means that your mortgage rate payments every month will also be a lot higher. Because of this, interest-only mortgages are traditionally a loan type preferred by savvy investors and well-heeled clients who want to use the principal portion of their payment on other more productive investments. Because interest-only mortgages are jumbo loans, the difference in monthly payment grows with the larger loan amount. Interest-only mortgage rates give you the chance to qualify for other loans, thus enabling you to buy more home or real estate properties. In an interest-only mortgage rate, your payment schedule is more flexible compared to other loan types. Most lenders of interest-only mortgage rates do not put any restrictions or penalties should you find it convenient to start paying off the principal loan balance. This is probably because a mortgage broker deals with two types of persons - the lender and the client. Resolving mortgage issues between these two is a time-consuming job. This is also perhaps why mortgage brokers charge high for closing fees. A percentage of the closing fee you pay on a mortgage goes to the mortgage broker's personal funds. " Second mortgage loan companies may charge you in varying number of points so if it might be helpful if you do a comparison first. 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. For example, a friend of yours wants to sell his home to you for $95,000 and has a take over mortgage of $90,000 with 7% interest. With a take over mortgage, you only need to put down $5,000 to assume your friend's home and mortgage. Along with the $5,000 take over mortgage down payment, closing fees are applicable.