For example, a 5/1 ARM will have the same rate for the first five years, then can adjust each year after that—meaning the rate might go up or down, based on the market. An ARM isn’t for everyone.

With an ARM, your rate stays the same for a certain number of years, called the "initial rate period," then changes periodically. For example, if you have a 5/1 ARM, your introductory rate period ...