(a) The total of the rate adjustments for any six-month period may not exceed one-half of one percent a year.
(b) If the stated interval for rate adjustments is a 12-month period or longer, a rate adjustment may not exceed one percent a year.

Terms Used In Texas Finance Code 347.105

  • Credit transaction: means :
    (A) any sale, loan, or other transaction involving a retail purchase of a manufactured home and under which a person in a written agreement, including a credit sales contract or loan instrument, grants to another person a purchase money lien on the manufactured home to secure an extension of credit that is:
    (i) subject to a finance charge; or
    (ii) payable in more than four installments, not including a down payment; and
    (B) a lease or bailment described by § 347. See Texas Finance Code 347.002
  • Year: means 12 consecutive months. See Texas Government Code 311.005

(c) The total of all rate adjustments over the term of the credit transaction may not exceed the least of:
(1) one-half of the initial rate;
(2) eight percent; or
(3) a rate, expressed as a percentage, computed by dividing the term of the loan in years by two.

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