We are wanting to make sure we can offer a Texas Home Equity loan with a variable rate, so long as the when the rate adjust, the payments adjust to avoid a negative amortiztion or a balloon.
I’m not familiar with Texas law at all, so I might be missing something here, but in KY there are many banks that offer HELOC’s with a variable rate, and their payment amounts do change.
Unless there is some kind of stipulation specific to Texas, you should be good to go.