An adjustable rate mortgage with two interest rates. One for the first term of the loan, whether it is 3, 5, or 7 years and then another rate for the remainder of the loan. This differs from a standard Adjustable Rate Mortgage in that it only adjusts once as opposed to every few months.

The 10/20 Mortgage is often referred to as a 2-step mortgage as well. With this mortgage the interest rate never varies, but is interest only for the first 10 years and fully amortized for the remaining 20 years.