Because the dynamics of interest rates in the market are never certain, the amount of your adjustable-rate mortgage payments are uncertain as well. Adjustable-rate mortgage payments generally have lower initial interest rates compared to fixed-rate mortgages. This makes an adjustable-rate mortgage payment more affordable and easier on the pocket. The savvy investor can make it so that his investment using the money he gets from the per month difference growth of an interest-only mortgage can increase within a short period, thus leveraging incomes to build assets. This is partly the reason why interest-only mortgages are still preferred by big-time investors. But within the next year or two, financial experts have come up with predictions mostly outlining the rise of mortgage interest rates. A sad fact however, is that with mortgage interest rates, there are no certainties and no guarantees. No one can really tell whether or not mortgage interest rates will rise over a period of time. 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. Higher closing costs paid to them means lower mortgage rates. However, if you do not wish to pay for all the closing costs upfront, the lender will raise your mortgage rate in order to cover it. A second thing that affects mortgage refinancing is the borrower's loan qualifications and credit line. A positive credit history would spell good news for mortgage refinancing. However, if credit is bad or if the relationship between debt and income is skewed, then mortgage refinancing is not the right option. Balloon Payment Mortgage The other term for a balloon payment mortgage is a partially amortized loan. Balloon payment mortgage is when your liability or obligation is only partially amortized, leaving the rest to be paid upon the completion of the term. 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.