According to Kondowe, if your goal is to pay the least possible amount of interest on your home loan in the long run, a variable interest rate is always going to be your best bet. However, if you’re facing uncertain financial times and are willing to pay a little extra for the security of knowing exactly what you owe each month (for up to five years), a fixed rate may be the option for you. The interest rate for an adjustable-rate mortgage is a variable one. The initial interest rate on an ARM is set below the market rate on a comparable fixed-rate loan, and then the rate rises as time goes on. If the ARM is held long enough, the interest rate will surpass the going rate for fixed-rate loans. A cap on a variable rate loan is a maximum limit on the interest rate that you can be charged, regardless of how much the index interest rate changes. Currently, interest rates for SoFi variable rate student loans are capped at 8.95% or 9.95%, depending on the term, and SoFi variable rate personal loans are capped