The rise and fall of mortgage interest rates have become erratic during the past 20 years. As a rule of thumb, mortgage interest rates go up when the economy is strong and stock prices rise. On the other hand, if economy weakens, mortgage interest rates go down. In today's market, the mortgage interest rates are much lower than they were in the mid-1980s to the 90s. 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. Negative Amortization Mortgage: Pros and Cons Payment plans for an amortization mortgage are usually based on adjustable rate payment loans. Adjustable rate amortization mortgages are loans where the amount you pay depends on the rise or fall of interest rates. Some types of adjustable rate amortization mortgages offer payment caps than interest rate caps. Because mortgage brokers do not work for only one company, they have more access to mortgages and loans. Greater suitability and better mortgage options are what mortgage brokers bring to their customers. For instance, your credit history is not that great. Banks generally reject mortgage applications if the credit score is below 670. 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. Since reverse mortgages do not involve any monthly payments, you not have to go through these tedious prequalification procedures. Below are some interest-only mortgage rate programs made available to you: One Month Libor Loan - The interest-only mortgage rate of this loan is the sum of the LIBOR index plus a margin of 0.125%. 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.