With balloon payment mortgages, if you can't pay the lender the amount on the due date, you might have to foreclose and lose the property. Some lenders offer extensions for their 30-years-due-in-7 balloon payment mortgages. Lenders of this type of loan may extend your balloon payment mortgage for another 23 years but with a new interest rate. If interest rates rise to the point that the interest due cannot be covered by your monthly amortization mortgage payment, the unpaid amount will be added into the loan balance, increasing it over time. For instance, the payment cap of your amortization mortgage is 7.5%. With a monthly amortization mortgage payment of $1,000 and rising interest rates, your new payment would normally be $1200/month. So how do you own a home when you do not have enough savings to cover down payment costs? The answer is a home mortgage. A home mortgage is actually different from a home loan. A home mortgage is the contract that you sign in order to get a loan from a banking institution or lending company. The loan is the money that the lender provides for you. But even then, interest-only mortgage rate programs are made available to borrowers who want to avoid incurring penalties when taking large equity sums. 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%. Borrowers can find that there are various practical benefits that an interest-only mortgage can offer. First is that, interest-only mortgages can help you in accumulating assets. Because interest-only mortgages do not demand so much during its initial years, you can use the payment differential in a cash investment. And also, a successful mortgage rate comparison means looking through the literature you get from investment firms. Find the key features included in the documents and do a mortgage rate comparison of these with more or less similar products from various other firms. If there is anything at all that confuses you a bit or something that you do not understand while you're doing your mortgage rate comparison, do not hesitate to ask for advice.