Fixed-Rate vs. Adjustable-Rate Mortgage Loans Along with other decisions you will find yourself making while shopping for a mortgage, you will be deciding whether to take a fixed-rate mortgage (FRM) or an adjustable rate mortgage (ARM). As the name implies, the interest-rate of an FRM will remain the... 

Adjustable Rate Mortgages An adjustable rate mortgage, often called ARM, has an interest rate that is not fixed. The interest rate varies based on one or many indexes. This could be to the one-year treasury bills or to another specific index. You may note that different lenders tie the adjustable rate...