51 Arm Loan Arm Loans Explained 7 Arm Rates variable rates mortgages adjustable-rate mortgages (arms), also known as variable-rate mortgages, have an interest rate that may change periodically depending on changes in a corresponding financial index that’s associated with the loan. generally speaking, your monthly payment will increase or decrease if the index rate.Our adjustable rate mortgages can offer flexibility with competitive interest rates. Contact us today at. residential 7/1 portfolio libor ARM. Rate, APR, Points.Adjustable rate mortgages, for example, are often linked to libor. freddie mac ceo donald layton explained in an interview with HousingWire that find LIBOR’s replacement is a work in progress, but.