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Adjustable rate mortgages (ARMs) Adjustable rate mortgages attend to provide a homeowner with a lower initial interest rate but more uncertainty about interest rate and payment changes in the future. With adjustable rate mortgages, the interest rates are dependent on general interest rates or what is known as an index. Many adjustable rate mortgages are considered 'hybrid mortgages' and have a fixed introductory period of 1, 3, 5 or 7 years during which time the interest rate does not change. Many other types of ARMs typically have shorter interest rate adjustment periods however. These types of hybrid adjustable rate mortgages may be better options for you if you only intend to stay in your home for a few years.