NOV. 5, ‘25 // Mortgages and auto loans typically have fixed interest rates. There are also a small number of home mortgages called adjustable-rate mortgages (ARMs), which means the interest rate can fluctuate throughout the length of the loan. That said, ARMs often have a period of fixed interest before they can fluctuate. Credit cards and home equity lines of credit (HELOC) often have variable interest rates, meaning the amount you’ll pay each month may vary based on market conditions. Variable interest rates may be beneficial when interest rates are declining, but when interest rates rise, you’ll pay more. Variable interest rates can also make it harder to budget, as you won’t have a set amount to plan for each month. Student loans. Student loans are usually fixedrate loans, but if you apply for a private student loan, you may be offered a variable rate. CM� Mon types of loans and their interest rates 128
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