Mortgage means to use any kind of security, any real or personal property for paying away the debt. Financial firms are ready to give away loans on the security of various mortgages like home, gold, property, future interests, bonds, and other valuable materials. A home mortgage loan is a loan secured by owing the home against the loan. The advantage of mortagage loans including home mortgage loans is that the borrower can avail of a greater loan amount at lower interest rates. One should also be able to obtain a longer time period for the repayment of loan. In today’s mortgage process many banks are offering “no-doc” or “low-doc” loans in which the borrower is required to submit only minimal financial information. Such loans carry a comparatively higher interest rate and are available only to borrowers having excellent credit. Many financial firms offer assumable home loans also. In assumable home mortgage loan, the existing owner can sell the home to a new owner by assuming the existing loan and then resell the home to another and so on. Step up loans are also offered by home mortgage loan lenders to borrowers. Here, repayment would start at a certain amount that is low enough to get into the home and then the payment increases over a period of three to five years and finally it becomes a fixed loan. Some financial firms even offer 5-10 years interest only periods for borrowers with a good credit history behind them. Home mortgage loans can be of two types – closed end and open end. In the former, a borrower will receive the whole amount as a lump sum at the time of closing and cannot borrow further. The loan amount depends on various factors such as income, appraised value of the collateral, and credit history. The main features of such loans are: Locked interest rates that will be constant. Consolidate your existing debt into a low fixed rate payment. Monthly payments may be automatically deducted from your checking account for repayment If you have a good credit history, loan amounts up to 100% of the collateral in your home can be obtained and some financial firms even offer loans of more than 100% of the collateral. In open end type of home mortgage loan, the lender gives the borrower the freedom of when to draw the money. The main features are Variable Annual Percentage Rate. The rate of interest is variable. The period of repayment is much more, about 30 years. The main advantage of the home mortgage loan is that it is tax deductible. Even a bad credit person can obtain a home mortgage loan. One can also improve his credit record by timely repayment of home mortgage loan. Before applying for your first mortgage loan, see what average home mortgage loan rates are. You can choose different home mortgage interest rates that work for your current and future situations.