Does an ARM make sense for you? Adjustable-rate mortgages typically feature lower rates during the initial period of the mortgage, meaning homebuyers have lower monthly payments. Adjustable rate mortgages are typically offered on a 1, 3, 5 or 7 year basis. Once the initial period expires, the mortgage rate will reset at the current interest rate levels. Resets can result in higher or lower monthly payments to the borrower, depending on the market. This adjustable-rate mortgage analyzer helps you understand the implication of your adjustable-rate terms by showing what your monthly payment will be under different scenarios.