Does the interest rate on my mortgage change over time?

Yes, the interest rate on your mortgage can change over time in Texas. This is due to a concept in mortgage law called "Adjustable Rate Mortgages" (ARM). An ARM is a type of mortgage loan where the interest rate is subject to change, usually in relation to an index, over the life of the loan. The interest rate is usually fixed for a certain period of time at the beginning of the loan, and then can adjust, either up or down, after that period of time. When you begin an ARM loan, it is important to understand the terms of your loan. You should know when and how the interest rate can adjust, the amount of the maximum and minimum interest rate, and the amount of any rate increases or decreases. Additionally, you should know the length of the fixed-rate period, the index which your loan’s interest rate is based on, and the margin or spread that the lender will charge. It is also important to be aware that any changes to your interest rate can affect your overall costs for the loan, including your monthly payment, the total amount of interest you will pay, as well as the amount of time it takes to pay off the loan. Make sure you understand the terms of your loan and consult with a mortgage professional if needed.

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