In fact though, their mortgage and the mortgage interest rates it connotes are a larger purchase than their home. In single loan term, the amount you pay to cover the mortgage interest rate cost is more often than not more than what you paid for your house. Reducing even a fraction of your mortgage interest rates can save you a great deal of money on your mortgage. This increase in mortgage rates is especially true if the loan amount exceeds the established loan limits of Fannie Mae and Freddie Mac. Loan limits typically changes at the beginning with each year to conform with the trend mortgage rates are taking. The length of the loan may also affect mortgage rates. But with an amortization mortgage with capped payment, you would only be paying $1075 and the other $125 gets added to your loan balance. But this setback of a negative amortization mortgage can be counteracted if you choose to pay the additional amount now and not wait for its payoff overtime. Another advantage of negative amortization mortgages is that cash flow is more easily controlled. When you get an interest-only mortgage, what you're really getting is an interest-only payment method which you can combine with other traditional mortgage types. The other thing you need to keep in mind is that the stated benefits of interest-only mortgages are exaggerated. In a standard mortgage, 95% if each dollar paid to the lender goes to the loan interest. Fixed Rate Home Mortgage Fixed rate home mortgages are home mortgages whose interest rates remain set for the duration of the loan term. The monthly payments for a fixed rate home mortgage may either for a period of 15 years or 30 years. Fixed rate home mortgages are considered stable. With fixed rate home mortgages, your interest rates are guaranteed and your monthly payments are predetermined. Find the key features included in the documents and do a mortgage rate comparison of these with more or less similar products from various other firms. If there is anything at all that confuses you a bit or something that you do not understand while you're doing your mortgage rate comparison, do not hesitate to ask for advice.