FSA also has mortgage rate comparison tables for mortgages, annuities, endowments, and ISAs (unit trust and OEICs). Other mortgage rate comparison tables are those for stakeholder pensions, mortgage endowments, and investment bonds. Mortgage Rate Comparisons and Shopping Shopping is the best way to do a mortgage rate comparison. Choosing libor index as basis for your interest-only mortgage rates entitles you to a number of benefits. Below is a short list of these interest-only mortgage rate benefits. Benefits of Interest-Only Mortgage Rates Interest-only mortgage rates allow you greater purchasing power. Because interest-only mortgage rates have lower costs compared to fixed rates or other types of loans, you are afforded extra money which would have been spent on high monthly payments. Because the initial interest rates and monthly payments are lower, a balloon payment mortgage is paid off with one large payment at the end of the loan term. 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. 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. These indices for mortgage interest rates are subject to the financial conditions of the market. Loans are offered with different mortgage interest rates. Take for example a traditional 30-year mortgage. This type of loan involves a fixed mortgage interest rate. The mortgage interest rate of a 30-year mortgage is higher than that of a 15-year mortgage. And if the property sells for less that the balance of the take over mortgage, the lender reserves the right to sue you for the difference. A take over mortgage is not a free ride either. In order to get a take over mortgage, you still need to undergo a pre-qualifying process. Closing fees will still need to be paid before you can get a take over mortgage.