A variable rate mortgage is a good fit for you if you are comfortable with the possibility of your payments fluctuating. The benefit of this type of mortgage is it allows you to take advantage of today's low Prime Rate. Most variable rate products are set below prime, and terms range from 3 to 5 years. Payments vary depending on the product or lender you choose. In some cases, you can fix your payments for up to 5 years, but the interest rate will fluctuate as the Bank Prime Rate changes. In other cases, your monthly payments will alter depending on how many times the Prime Rate changes during your term.