The rise and fall of mortgage interest rates have become erratic during the past 20 years. As a rule of thumb, mortgage interest rates go up when the economy is strong and stock prices rise. On the other hand, if economy weakens, mortgage interest rates go down. In today's market, the mortgage interest rates are much lower than they were in the mid-1980s to the 90s. As an added bonus, consumers who buy their variable rate mortgages from ING Direct have the option to convert their variable rate mortgage into a fixed rate mortgage of 3 years or more. This conversion from a variable rate mortgage to fixed rate can be done any time without penalties. Every 3 months, ING Direct variable rate mortgage interest rate will be adjusted to reflect their prime rate. Balloon payment mortgages are called such because borrowers who are on this type of loan are usually set up for a "balloon" payment at the end of their loan term. In most other loans, monthly payments do not only pay off the interest but also chip away at the principal amount - the original amount owed. " An 80 20 mortgage loan is for people who have good credit but do not have a lot of savings to their name in order to afford down payments of most homes. 80 20 Mortgage Loans for Renters 80 20 mortgage loans are also targeted to those people who are renters or renting apartments. These types of people can afford monthly rents, the costs of which are roughly about the same as the cost of a home. The result is a virtual tug-of-war. As interest rates of bank rate mortgages decline, the interest of investors and home consumers alike are tweaked just a little bit. But this all depends on the direction of the economic growth, inflation, appetite for the given product, and several other factors. A typical outcome of lowering rates for bank rate mortgages though is lesser interest on the part of the investors. Higher Interest Rates for Bad Credit Mortgage Loans It is only natural that high interest rates are charged for those borrowers who are on a bad credit mortgage loan. Handing out loans to borrowers with poor credit is a risky business and lenders want compensation for the risks they're taking. Bad Credit Mortgage Loan Limits But while rates are indeed high in bad credit mortgage loans, there are also limits to these.