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. Lenders of this type of loan may extend your balloon payment mortgage for another 23 years but with a new interest rate. These balloon payment lenders base their new interest rates on a conversion formula. In this case, you might have to re-qualify for the balloon payment mortgage should the new interest rate on the mortgage being converted is significantly higher than the old rate. Sellers of various products like bank rate mortgages compete with others for those investor dollars. Demands for specific products, e.g. bank rate mortgages, rise and fall according to the changes made in the investment strategies. For instance, if demand for bank rate mortgages falls, a change needs to be done to attract investors again. Home Equity Loans The home mortgage rates for home equity loans follow the prime rate. This means that home mortgage rates of home equity loans are directly affected by the cut backs on fed rates. However, home mortgage rates for home equity loans have always been perceived to be higher than the home mortgage rates of other loan types. To achieve this, they would have to lower down the mortgage rates even with interest rates going up. Other Factors Affecting Mortgage Rates Mortgage rates are affected by several other factors besides inflation. Mortgage rates rise up when the amount of the loan increases. This increase in mortgage rates is especially true if the loan amount exceeds the established loan limits of Fannie Mae and Freddie Mac. " An 80 20 mortgage loan is for people who have good credit but do not have a lot of savings to their name in order to afford down payments of most homes. 80 20 Mortgage Loans for Renters 80 20 mortgage loans are also targeted to those people who are renters or renting apartments. These types of people can afford monthly rents, the costs of which are roughly about the same as the cost of a home.