current mortgage rate texas

second current mortgage rate texas instants

is IMPORTANT for ARM buyers, since it helps you predict the future interest rate of your loan. Margin - This refers to the banks profit margin above the value of the financial index. The bank seeks to make a profit current mortgage rate texas the costs of inflation. The index is a measure of the cost of funds as measured by inflation. Index - A publicly published financial index such as LIBOR current mortgage rate texas 1 month, 6 month or 12 month), 11th District Cost of Funds Index, MTA, etc. Start Rate - The introductory rate provided to purchasers of ARM loans for the initial fixed interest period. The difference between the "Start Rate" of an ARM and the rate of a fixed terms loan is that the "Start Rate". Period - This is the frequency of adjustments, the longer the current mortgage rate texas remains fixed, the better the loan is for the borrower. Typically, the shorter this is the lower the rate, since there are current mortgage rate texas opportunities to adjust upwards. Floor - A clause that sets the minimum rate for the interest rate of an ARM loan. Most loans come with a Start Rate = Floor feature, but this is primarily for Non-Conforming (aka Sub-Prime or Program Lending) loan products. This prevents an ARM loan from ever adjusting lower. An current mortgage rate texas Paper" loan typically has either no Floor or 2% below start. Initial Change Cap - ARM loans have a specified maximum first adjustment that is typically higher than allowed on subsequent changes. Periodic Change Cap - The maximum interest rate adjustment for every subsequent periodic adjustment. Life Cap (Ceiling) - The current mortgage rate texas upwards adjustment of an ARM loan. Typically on first mortgages no more than 6% Crucial Information About