Because the interest of a 30-year fixed rate mortgage is amortized over a longer period, the monthly payments for this are lower than those on 15-year loans. Lower monthly payments on 30-year fixed rate mortgages give consumers an extra resource which they can pour into other worthy investments. On the other hand, this could also cause a slight disadvantage for 30-year fixed rate mortgage borrowers. The interest is the percent growth of the money as time goes. Amortization mortgage interest is computed based on the current amount owed. Thus the longer you've been paying for an amortization mortgage, the lower the interest becomes. Negative Amortization Mortgage: Pros and Cons Payment plans for an amortization mortgage are usually based on adjustable rate payment loans. Higher mortgage rates are expected if the down payment is less than 5% since the beginning equity is smaller and provides less collateral. Discount points are another way to move mortgage rates. Lower mortgage rates usually means higher points paid on your loan. The same goes for closing costs, which are fees that the lender must pay. 80 20 mortgage loans are structured by lenders in several ways. Some lending companies structure their 80 20 mortgage loan with the first loan having a 5/1 ARM payment. This means that the 80 20 mortgage loan has a fixed rate for the first five years. However after the initial five years, the payment for the 80 20 mortgage loan interest rates is adjusted annually. Usually, the interest rate of the 30-year balloon payment mortgage is lower than a normal 30-year fixed rate mortgage with due date of 30 years. Monthly payments of balloon payment mortgage are still amortized based on the 30-year term. But at the end of five or seven years, a large amount of the balloon payment mortgage is due. And if that's not enough, lowered home mortgage rates can be achieved through five or seven year balloon payments and a wide variety of adjustable rate mortgages. 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.