Q: What is the difference between a fixed-rate loan and an adjustable-rate loan? A: With a fixed-rate mortgage, the interest rate stays the same during the life of the loan.  With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index.  While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change.  There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.