However, lenders can change the loan terms of take over mortgages so you must be prepared for that. Along with the interest rate and the monthly payments, you also inherit the liability of the take over mortgage. If for instance, you cannot make the payments for the take over mortgage, the lender will foreclose. In an interest-only mortgage rate, your payment schedule is more flexible compared to other loan types. Most lenders of interest-only mortgage rates do not put any restrictions or penalties should you find it convenient to start paying off the principal loan balance. Even with prepayments, many interest-only mortgage rate lenders will still let you pay up to 20% of your loan balance during any 12 month period without prepayment penalties. 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. These changes on variable rate mortgages are affected by several factors, such as changes in investor markets. Because of its low initial payment, a lot of people like to take on a variable rate mortgage. Financial reports suggest that the risks you assume in taking a variable rate mortgage are considerable but the gains are even more so. Another thing is that mortgage brokers can be more resourceful than banks. 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. Some lending companies structure their 80 20 mortgage loan with the first loan having a 5/1 ARM payment. 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.