what is a variable rate mortgage 
a variable rate mortgage is a type of home loan in which the interest rate is not fixed instead interest payments will be adjusted at a level above a specific benchmark or reference rate such as the prime rate 2 points lenders can offer borrowers variable rate interest over the life of a mortgage loan they can also offer a hybrid adjustable rate mortgage arm which includes both an initial fixed period followed by a variable rate that resets periodically thereafter common varieties of hybrid arm include the 5 1 arm having a 5 year fixed term followed by a variable rate on the remainder of the loan typically 25 more years 