Other consumers choose 30-year fixed rate mortgages because the payments are considerably lower than the former. Each type of fixed rate mortgages certainly has its own advantages and disadvantages. Here are some of them. 30-year Fixed Rate Mortgage - Advantages and Disadvantages A 30-year fixed rate mortgage gives consumers the opportunity to borrow money on a long-term basis. Larger down payments usually mean smaller monthly payments for your bad credit mortgage loan. This also means that you can slowly and steadily reduce your bad credit mortgage loan balance, providing for better affordability. A Few Companies Offering Bad Credit Mortgage Loans Bad Credit Loans & Mortgages are offering a bad credit mortgage loan program that involves the following key features: lowest interest rates in the U. At that rate, the homeowner will be running serious risk of depleting his home's total equity by going for another loan through mortgage refinancing. This is especially true for mortgage refinancing when closing costs start rolling in. A second thing that affects mortgage refinancing is the borrower's loan qualifications and credit line. A tip for home borrowers is that when you do take on a balloon payment mortgage makes sure that the due date is not too soon. With balloon payment mortgages, if you can't pay the lender the amount on the due date, you might have to foreclose and lose the property. Some lenders offer extensions for their 30-years-due-in-7 balloon payment mortgages. The first mortgage is comprised of 80 percent of the home's price. The second loan is only for 20 percent minus the down payment. 80 20 Mortgage Loans - Second Mortgage spells higher rates In most cases, the interest rate of the second loan of an 80 20 mortgage loan is higher that first. However, if you combine the two payments in an 80 20 mortgage loan, you get lower costs. Because interest-only mortgages are jumbo loans, the difference in monthly payment grows with the larger loan amount. For example, in a $100,000 interest-only mortgage loan, the per month difference is $100. If the loan is worth $1,000,000, then the difference per month grows to $1,000, a substantial amount that can be put to better use.