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Home Equity Rates
If you have a fixed-rate loan, the interest rate is set for the life of the loan. However, you may also choose a variable rate mortgage, also known as adjustable rate mortgages or ARMs. These provide for periodic interest-rate adjustments. If your loan contract allows for the loan to adjust or an interest rate change, be sure you understand when the interest rate changes, whether there are any limits on how much the interest or payments can change, and how often the rate change. You also should know how the new rate of interest will be determined.