This is partly the reason why interest-only mortgages are still preferred by big-time investors. However, it is only natural to assume that there are some considerable risks associated with an interest-only mortgage, especially when it comes to stocks. Interest-only mortgages have payment periods based on adjustable rate mortgages. These questions race through our minds whenever we are faced with a financial situation that requires us to understand a little bit more about bank rate mortgages. The answer is simple enough. Bank rate mortgages are moved by several factors that are different from but are somehow connected with each other. However, home mortgage rates for home equity loans have always been perceived to be higher than the home mortgage rates of other loan types. Find a home with the Lowest Home Mortgage Rate Once you understand the advantages of each type of mortgage - whether a fixed rate or adjustable or a home equity loan, the next step of the process is finding yourself a home. These investors are actually the ones who set the standards in mortgage interest rates. When news of a growing economy erupts, the Fed will raise the mortgage interest rates in an effort to slow down economic growth and lower stock prices. As a result, the investors would demand higher mortgage interest rates from their lenders. 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. Fixed rate mortgage loans are characterized by fixed rates and monthly payments that are generally for a 15-year and 30-year periods. Fixed rate mortgages are popular in the consumer market because of its stability. Most consumers are hesitant to get house loans where the rates fluctuate with the changing interest rates of the market.