The use of mortgage as a tool in business has increased exponentially. In other words the dependency of business on mortgage has seen a positive growth. Every now and then people pass on the liability of one asset to another through the use of mortgage. A mortgage loan is offered on mortgage property which can range from personal mortgage property to commercial or real estate properties. The initial value of the real estate property is high in almost all situations. So to meet it people avail the mortgage loan. A mortgage is offered on a mortgage property. The important fact about the mortgage loan is that, the rate that is imposed on the mortgage loan is quite low. Now comes the question of what is the mortgage rate and is is really low? What are the types of mortgage rate in the market? What are the mortgage rates that my lender offers? Which type of mortgage rate is the best choice? And so on and so forth. On reading this article one can find answers to these questions. A mortgage rate is the rate that is imposed on raising the loan to buy the real estate. There are different kinds of mortgage rates available. To name a few we have the fixed rate mortgage, adjustable rate mortgages, negative amortization mortgage, and balloon payment mortgage. A fixed rate mortgage as the name signifies imposes a steady rate in the borrower. Here in the rate of the loan does not change over time and remains constant. Mortgage loans are in contrast with the ordinary loans. Normal loans have a floating rate concept where in the rate of the loan differs in according with the change in property tax.. The main disadvantage of using a fixed rate mortgage is that the increase in the property tax or property income is not considered and the rate remains the same. Fixed rate mortgage are the legacy in the loan payment form. Although a fixed rate mortgage is a boon to many borrowers, the concept of variable mortgage rate loan serves the need of many lenders. As the variable specifies a variable rate mortgage is one where the interest rate is responsive to the current market conditions. The base rate of the central bank is the main factor by which there is a change in the mortgage rate. A variable rate mortgage is offered at the lenders standard variable rate.