Adjustable Rate (ARM) Adjustable-Rate Mortgage (ARM)A type of mortgage, in which the interest rate applied on the outstanding balance, varies throughout the life of the loan. Adjustable-Rate Mortgage (ARM)The initial interest rate is fixed only for a period of time. Adjustable-Rate Mortgage (ARM)After the initial period of time, the interest rate resets periodically. (generally yearly or sometime even monthly intervals). Previous slide Next slide