Moreover, it is also helpful if you also have an idea as to where those second mortgage loan payments will cover. Some second mortgage loans require you to make monthly payments on both interest and principal. Other second mortgage loans only require you to pay the interest of the borrowed amount. The former type of second mortgage loans will allow you to significantly shorten your payoff period since with each payment you make, you are also chipping away at the principal. Paying off an amortization mortgage is usually done in equal monthly installments. One example of an amortization mortgage is one that involves your car loan or your home loan. Your credit account however cannot be considered an amortization mortgage since it does not involve a fixed date for payoff. 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. Fixed Rate Home Mortgage Fixed rate home mortgages are home mortgages whose interest rates remain set for the duration of the loan term. The monthly payments for a fixed rate home mortgage may either for a period of 15 years or 30 years. Fixed rate home mortgages are considered stable. With fixed rate home mortgages, your interest rates are guaranteed and your monthly payments are predetermined. 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. But at the end of that period, the adjustable-rate mortgage payment will vary once more. Determining whether or not an adjustable-rate mortgage payment is the right type of loan for you usually depends on your financial situation. Also, it depends on the type of adjustable-rate mortgage payment you plan to make.