Some types of adjustable-rate mortgage payments have limits to the interest-rate increase. When an adjustable-rate mortgage reaches a certain percentage, the interest rate will no longer increase for the duration of that period. But at the end of that period, the adjustable-rate mortgage payment will vary once more. With a monthly amortization mortgage payment of $1,000 and rising interest rates, your new payment would normally be $1200/month. But with an amortization mortgage with capped payment, you would only be paying $1075 and the other $125 gets added to your loan balance. But this setback of a negative amortization mortgage can be counteracted if you choose to pay the additional amount now and not wait for its payoff overtime. Reverse mortgages usually cater to homeowners who are 62 years old and older. Reverse Mortgage vs. Other Home Loans In most other loans, a systematic check on your income and assets is done in order to pre-qualify for the mortgage. This is done as an assurance to the lender that you will be able to afford the monthly payments tied with a loan. This means that the 80 20 mortgage loan has a fixed rate for the first five years. However after the initial five years, the payment for the 80 20 mortgage loan interest rates is adjusted annually. Others structure their 80 20 mortgage loans in a slight different way. 80 20 mortgage loans have the 20 percent piggyback dependent on the prime rate. 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. Lenders who offer bad credit mortgage loans do not even take a second glance at your credit history. The important thing is you get your money and that's that. Speaking of lenders, which lending companies are offering bad credit mortgage loans among their list of loan programs? Several bad credit mortgage loans are being offered by some alternative loan companies.