This loans carry a fixed interest rate for a predetermined period and will adjust to current market rates once the fixed period is over. The most common adjustable rate loans are 3/1 (rate is fixed for the first 3 years), 5/1 (rate is fixed for the first 5 years), 7/1 (rate is fixed for the first 7 years), 10/1 (rate is fixed for the first 10 years) and are usually amortized over a 30 year period.