What is the meaning of adjustable rate mortgages?

Adjustable rate mortgages are the less-stable version of a home mortgage. As opposed to a fixed-rate home mortgage, an adjustable rate home mortgage is not confined to the single interest rate that is adhered to by a fixed interest mortgage. For example, a fixed interest mortgage charges the same amount of interest regardless of how the prime interest rate for housing fluctuates. In contrast, an adjustable rate mortgage can fluctuate with market conditions, ultimately costing the borrower more.