Mortgage lending comes in many different shapes and sizes from a fixed mortgage to a balloon payment. There are creative ways to get people financed for a home. A fixed rate mortgage was the most common for many years. The loan is fixed at a specific interest rate for the entire term of the loan. A balloon mortgage for example can start with lower monthly payments to accommodate a buyer's income. At a time designated in the future, a large portion of the balance or the entire loan balance becomes due. This can help a homeowner get financed and then refinance at a later time or if a home owner plans on living in the home for only a few years. This type of mortgage might also be desirable for an investor who plans on buying and then selling the house. An interest only mortgage is when only interest payments are paid until a certain date. This usually reduces the monthly payment obligation to get a buyer into a property and buys time for the homeowner to afford the principal and interest payment one day or refinance the loan.