Adjustable rate home mortgages generally have lower interest rates compared to fixed rate home mortgages. But this low interest rate in adjustable rate home mortgages is only for a short period of time. After about a year, the new interest rate of an adjustable rate home mortgage will either rise or fall, depending on the movement of the lending company's prime rate. Interest-Only Mortgage Rates Interest-only mortgage rates are based on fixed rate payments. Some interest-only mortgage rates are set on adjustable rate payments. Whichever is the case, interest-only mortgage rates are always tied to the libor index. The libor index of interest-only mortgage rates stands for London Interbank Offered Rate. These forced buyers to use take over mortgages so they could assume loans with lower rates. If you want a take over mortgage, remember that if a deal sounds too good to be true, it probably is. Sellers offering cheap take over mortgages are also offering something of significant value. With take over mortgages, sellers are likely to charge more for their houses. The 3-month variable rate mortgage on the other hand has prime less 2.25% for 3 moths followed by Canadian Bank Prime less 0.375% with 1% cash back and airmiles. Variable Rate Mortgage by Scotiabank The Scotia Ultimate Variable Rate Mortgage offers their consumers a Cap rate guarantee. Consumers are given the choice of buying the variable rate mortgage for a rate discount of 0.50% off Scotia's Prime rate for the full three-year term. Amortization Mortgages: What the experts say According to Philip Russel, assistant professor of finance at Philadelphia University, an amortization mortgage is "the systemic payment plan - such as a monthly payment - so that your loan is paid off over the specified loan period." Based on his given definition, we can therefore safely conclude that an amortization mortgage is an amount of money that is to be paid off by a certain date. Mortgage rate comparisons are a serious activity to be undertaken and should not be taken lightly. Mortgage rate comparisons will help you make your informed decision on loans. Knowing what to look for in a mortgage is therefore important for a successful mortgage rate comparison. When you find a product you like, read the product details before making a commitment.