Advertising Both Fixed-Rate and Adjustable-Rate Mortgages

A mortgage advertisement should not make the fixed option visually dominant while presenting the adjustable option as a minor afterthought. Regulation Z addresses ads mentioning both product types and requires comparable treatment of the terms describing them.

The combined-ad rule

Section 1026.24(i)(1)(iii) applies when an advertisement refers to both fixed-rate and variable-rate transactions. It requires “fixed” and “adjustable-rate” or “variable-rate” to be equally prominent and in close proximity. Equal prominence concerns how those phrases appear; close proximity prevents the comparison from being separated across distant sections or screens.

When ‘fixed’ describes fixed products only

When “fixed” refers solely to fixed-rate products, the advertisement must also satisfy § 1026.24(i)(1)(ii). The combined-ad provision does not replace that separate fixed-rate advertising requirement. Review the actual language and applicable provision together.

Advertisement review

1. Identify whether the ad refers to one rate type or both fixed and variable-rate products.
2. If both appear, compare prominence and proximity of “fixed” and “adjustable-rate” or “variable-rate.”
3. Determine whether “fixed” refers only to fixed-rate products; if so, check § 1026.24(i)(1)(ii) too.
4. Review the complete layout and presentation, not just isolated words.
5. Check other trigger terms under § 1026.24; equal prominence does not replace other disclosures.

Review the actual visual presentation

Equal prominence is not limited to using the same words somewhere on a webpage. Compare font size, weight, color, placement, duration, audio emphasis, and how a consumer encounters the claim. A large “fixed rate” headline paired with a small “adjustable after year five” footnote may fail the rule when the ad refers to both product types.

Close proximity also matters. Put “fixed” and “adjustable-rate” or “variable-rate” descriptions together so a consumer can understand the comparison at a glance. A split-screen, mobile card, or video sequence should be reviewed in the format consumers actually see; compliance in a desktop mockup does not guarantee the mobile version is compliant.

Example: paired mortgage offers

Suppose an ad presents a 30-year fixed loan beside a 5/1 ARM. The labels “Fixed” and “Adjustable-Rate” should be equally prominent and close together. If the ad adds a teaser payment or introductory rate, separate trigger-term disclosures may also be required under other parts of §1026.24. Equal prominence for the product labels does not cure an incomplete APR or payment disclosure.

If the advertisement says only “fixed mortgage” and the term “fixed” describes fixed-rate products, §1026.24(i)(1)(ii) may apply in addition to other advertising rules. Read the full claim, not just the label. Different requirements can apply to oral, written, electronic, and broadcast ads.

A simple ad-review workflow

Inventory every rate claim and identify whether the ad refers to one rate type or both. Mark each use of “fixed,” “adjustable-rate,” “variable-rate,” or “ARM.” Compare prominence and proximity, then check whether a rate, payment, or other trigger term requires additional information. Finally test every version, including social tiles, landing pages, video captions, and audio.

Save the approved artifact and review record so the creditor can show what was published. If the ad is changed by a branch, affiliate, or lead generator, confirm that the final public-facing version preserves the required presentation. A compliant central template can become noncompliant when a partner enlarges one label or removes the paired wording.

Common design mistakes

A web page may place “fixed rate” in a hero banner and explain that the comparison loan is adjustable several scrolls below. A social-media graphic may bold “fixed” and render “ARM” in a disclaimer-sized font. A radio spot may describe a fixed payment prominently but refer to an adjustable rate quickly at the end. These formats can fail prominence or proximity even when both words technically appear.

Review the consumer’s complete experience, including linked landing pages and mobile display. The regulation’s paired-term requirement applies to the way the claims are presented; burying the qualifying word in another screen or fleeting audio does not create an effective comparison. Keep a compliance record for each channel version.

Other ad claims still need review

Equal prominence does not address whether an advertised rate is actually available, what assumptions apply, or whether a trigger term requires APR, payment, or repayment disclosures. Review applicable provisions of §1026.24, including the requirements for advertised credit terms and claims such as a low rate or payment. State law and UDAAP standards may also apply.

For a fixed-rate claim, make sure the advertised product really has a fixed interest rate for the period consumers are led to expect. A fixed initial payment can coexist with an adjustable rate or changing taxes and insurance. Avoid phrasing that implies the entire housing expense is fixed when only principal and interest are.

Sample review notes

A reviewer can annotate a draft with each use of “fixed,” “ARM,” “adjustable,” and “variable,” then compare the visual and audible presentation side by side. If both product types are featured, the paired descriptors should be equally prominent and close together. Record the final landing page and device view used for approval, since a mobile crop can remove qualifying language.

If a lead generator or co-brand partner republishes the ad, check that the full required language remains visible. Keep the approval and substantiation records under the company’s own retention schedule and any applicable regulator request. The law’s advertising carve-out from §1026.25(a) does not remove the need to supervise marketing vendors.

A fast creative review

Compare the actual consumer impression, not just the font-size field in a design file. A fixed-rate offer shown in a large headline beside a tiny ARM qualification can be misleading even if the words technically appear on the page. Review mobile layouts, captions, thumbnails, audio, and landing pages as a consumer encounters them. Keep the fixed and adjustable descriptions close enough that readers understand the comparison applies to both products.

A checklist can make review repeatable: capture each claim, identify the product it describes, check prominence and proximity, confirm any rate or payment assumptions, and save the approved version. If the ad uses a payment example or trigger term, check the other applicable Regulation Z advertising requirements too. A co-brand partner’s logo or repost does not shift the creditor’s responsibility to supervise its own advertising.

Exam takeaway

For a combined fixed and ARM ad, remember the paired phrases, equal prominence, and close proximity. If fixed describes only fixed products, also apply § 1026.24(i)(1)(ii).