| A mortgage rates vary according to the type and the | | | | A fixed interest rate mortgage has an interest rate |
| duration of the loan. There are three types of | | | | that will not change, and a variable interest rate moves |
| mortgage rates: | | | | up and down based on the changes of an underlying |
| 1. Adjustable Mortgage Rate | | | | interest rate index. |
| 2. Fixed Interest Rate | | | | There are numerous Houston based mortgage |
| 3. Variable Interest Rate | | | | companies willing to present a ready report of |
| A mortgage with an adjustable interest rate takes into | | | | mortgage rate calculator. These companies offer |
| consideration that an interest rate may change (usually | | | | refinancing that involves obtaining a new mortgage |
| in response to changes in the Treasury bill rate or | | | | loan on a property already owned - often to replace |
| prime rate. The purpose of the interest rate | | | | existing loans on the property. When the mortgage |
| adjustment is primarily to bring the interest rate on the | | | | rates are low, it is a good time to refinance. |
| mortgage in line with market rates. The mortgage | | | | Refinancing can save you money on your monthly |
| holder is protected by a maximum interest rate (called | | | | mortgage payments. These companies also offer |
| a ceiling) that might be reset annually. ARMs | | | | lock-in rates, or rate lock option that ensures the |
| (Adjustable Mortgage Rates) usually start with better | | | | borrower a commitment to a specified mortgage rate, |
| rates than fixed rate mortgages, in order to | | | | including not only the interest rate but also its discount |
| compensate the borrower for the additional risk that | | | | origination points. |
| future interest rate fluctuations will create. | | | | |