text: what is an arm in the mortgage world? also what is the best loan for a home mortgage? fixed? flexible? i'm confused? you couldn't tell could ya? *giggle* arm = adjustable rate mortgage, this should be avoided when you know that you are going to live in the same house for more than 5 years. arm mortgage can be 3,5 or 7 yr arm. in these first 3,5 or 7  yrs are generally fixed and then for rest of the term it is adjustable. fixed rates are best these days if you can get a rate less than 6.75%. if you want to go for adjustable rate make sure there is a cap and it should not go more than 7% otherwise some times the interest payment can go higher than the principle. i am sure you don't want that. good luck with your mortgage