On an ARM loan, what does a 10/1 ARM mean? A. The rate is still fixed for 30 years, this just means that during the first 10 years the lender has the right to increase the monthly payment in order to adjust the amortization schedule. B. This means your rate and monthly payments stay fixed for 10 years, then can adjust up or down at the end of 10 years based on the going interest rates. C. This just means that you have an opportunity to make "interest-only" payments during the first 10 years. D. This type of loan is now illegal and was banned by the Dodd-Frank law.