The margin will remain fixed throughout the term of interest-only mortgage rate loan. However, with the index value adjusted every month, your interest-only mortgage rates may also be changed. Six Month Libor Loan - Like the One Month Libor Loan, the interest-only mortgage rate of this loan is the LIBOR index and margin which is 0.125%. In other words, a second mortgage loan is used as collateral pledged for the first loan. Length of Second Mortgage Loans Second mortgage loans have varying lengths with which they are eventually paid off. Some second mortgage loans may last for as long as 15 or 20 years. Other second mortgage loans only require one year for repayment. Although mortgage rates have the tendency to move in the same direction as interest rates, their actual movements are also based on the supply and demand for mortgages. Mortgage rates have a slightly different equation in their supply and demand as compared to interest rates. This is the reason why sometimes, mortgage rates move differently from other rates. Mortgage Interest Rates For most people, the biggest purchase they will ever make is their home. In fact though, their mortgage and the mortgage interest rates it connotes are a larger purchase than their home. In single loan term, the amount you pay to cover the mortgage interest rate cost is more often than not more than what you paid for your house. 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. Instead, they work independently as free lance agents who are on the look out for borrowers looking for a good mortgage. So what? Looking for a home mortgage usually involves you, your money, and a bank officer or a mortgage broker. So what's the big deal? You ask. The end result is the same - you get a mortgage; you get a new house.