Adjustable-Rate Mortgages (ARM Loans)
Adjustable-Rate Mortgages from First Kentucky!
ARM Loans: A flexible loan option for life’s next step.
Fill out our online form, contact a local lender, or visit a branch to get started today!
2026 ARM Ad Disclosures
A 10/1 ARM (adjustable-rate mortgage) for $160,000 on a 30-year term with an initial interest rate of 6.65% (6.691% APR) would result in 360 monthly payments of $1,027.15 including principal and interest. A 5/1 ARM (adjustable-rate mortgage) for $160,000 on a 30-year term with an initial interest rate of 6.78% (6.821% APR) would result in 360 monthly payments of $1,040.95 including principal and interest. A 3/1 ARM (adjustable-rate mortgage) for $160,000 on a 30-year term with an initial interest rate of 6.74% (6.781% APR) would result in 360 monthly payments of $1,036.70 including principal and interest. A 1/1 ARM (adjustable-rate mortgage) for $160,000 on a 30-year term with an initial interest rate of 6.55% (6.590% APR) would result in 360 monthly payments of $1,016.58 including principal and interest.
Monthly payments do not include taxes and insurance, and the actual payment obligation will be greater. The initial rate is a discounted rate for a period of 120 months. Your variable rate is subject to a floor of your Initial Interest Rate. Your variable interest rate can increase or decrease after 10 years by 2.5 percentage points annually and can increase 7.5 percentage points over your Initial Interest Rate over the term of your loan. The Index for this loan program is The Weekly Average Yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal Reserve Board. APR shown is based on owner occupied home loans in amounts of $50,000 or above, 89% Loan to Value (11% down payment), origination fee of $650, Flood and life of loan fee $18, satisfaction of credit qualifications, and credit score of 700 or greater. Terms, interest rates, and fees may vary.
What Is an Adjustable Rate Mortgage (ARM)?
An adjustable rate mortgage (ARM) is a home loan that offers a lower initial interest rate for a set period of time, followed by rate adjustments at predetermined intervals.
Unlike a fixed-rate mortgage, where the interest rate stays the same for the life of the loan—an ARM’s rate can change over time based on market conditions.
In short: Lower starting rate. Flexible structure. Potential long-term savings.
Why Choose First Kentucky Bank for an ARM Loan?
✔ Lower Initial Payments
ARM loans typically start with a lower interest rate than fixed-rate mortgages, which can mean lower monthly payments upfront.
✔ Flexibility for Life Changes
Planning to move, refinance, or upgrade in a few years? An ARM can be a smart option if you don’t expect to keep the loan long-term.
✔ Local Guidance You Can Trust
Our lending team explains your options clearly so there’s no confusing fine print and no surprises.
✔ Trusted Community Bank Support
As a local Kentucky lender, we tailor solutions to your goals, not a one-size-fits-all approach.
How an Adjustable-Rate Mortgage Works
- Introductory Fixed-Rate Period
Your interest rate stays the same for an initial period (such as 1, 3, 5, or 10 years). - Adjustment Period
After the introductory period ends, your rate may adjust at regular intervals based on market conditions. - Rate Caps Provide Protection
ARM loans include limits (caps) on how much your rate can increase:- Per adjustment
- Over the life of the loan
- Ongoing Flexibility
You may refinance or sell before adjustments occur, depending on your financial goals.
ARM vs. Fixed-Rate Mortgage: What’s the Difference?
Fixed-Rate Mortgage
- Interest rate stays the same for the life of the loan
- Predictable monthly payments
- Ideal for long-term homeowners
Adjustable-Rate Mortgage (ARM)
- Lower initial interest rate
- Payments may change after the fixed period
- Best for short- to mid-term homeownership or changing financial plans
Advantages & Disadvantages of ARM Loans
Advantages of an ARM
- Lower initial interest rate
- Lower monthly payments at the start
- Potential savings if rates stay stable
- Ideal if you plan to move or refinance
Disadvantages of an ARM
- Future payments may increase
- Less predictable long-term budgeting
- Not ideal for homeowners staying long-term (unless you plan to refinance)
Our lenders can walk you through worst-case scenarios, so you know exactly what to expect.
Is an Adjustable-Rate Mortgage Right for You?
An ARM may be a good fit if you:
✔ Expect to move or refinance within a few years
✔ Want lower initial monthly payments
✔ Anticipate rising income in the future
✔ Are comfortable with some payment variability
If you’ve been asking:
- “Should I choose a fixed or adjustable mortgage?”
- “Are ARM loans risky?”
- “Who should use an adjustable-rate mortgage?”
- “Would an ARM be a good fit for my financial situation?”
We’re here to help you decide confidently.
ARM Loan FAQs
What is an adjustable-rate mortgage? An adjustable rate mortgage (ARM) is a home loan that begins with a fixed interest rate for a set period, then adjusts periodically based on market conditions.
How is an ARM different from a fixed-rate mortgage? A fixed-rate mortgage keeps the same interest rate and monthly payment for the entire loan term. An ARM starts with a lower fixed rate that can change after the introductory period ends.
Are ARM loans risky? ARM loans are not inherently risky when used appropriately. They may not be ideal for long-term homeowners, but they can be a smart solution for borrowers with short- or mid-term plans.
How often does an ARM rate adjust? After the initial fixed-rate period, adjustments typically occur annually, depending on the loan structure.
Are there limits on how much the rate can increase? Yes. ARM loans include rate caps that limit how much the interest rate can increase: at each adjustment and over the life of the loan
Can my interest rate go down with an ARM? Yes. If market rates decrease, your ARM rate and monthly payment may also decrease but this would be subject to the loan’s terms.
Who should consider an ARM loan? ARM loans are well suited for:
- First-time homebuyers with future income growth
- Buyers planning to move within a few years
- Homebuyers seeking lower initial payments
Can I refinance an ARM into a fixed-rate loan? Yes. Many borrowers choose to refinance into a fixed-rate mortgage before the adjustable period begins, depending on market conditions and personal goals.
What ARM options are available at First Kentucky Bank? ARM types, terms, and qualifications vary (see top of page for example rates/disclosures). Contact our lending team to discuss available options and personalized solutions.
Why Work with First Kentucky Bank?
As a local community bank, First Kentucky Bank offers:
- Clear explanations without pressure
- Local decision-making
- Personalized mortgage strategies
We proudly serve customers looking for:
- Adjustable-rate mortgages in western and central Kentucky
- ARM vs fixed-rate mortgage guidance
- Local mortgage lenders
- First-time homebuyer loan education
Ready to Explore Your Mortgage Options? Whether you’re choosing between a fixed-rate loan or an ARM, we’ll help you find the mortgage that fits your financial goals.
✔ Call us at 1.866.839.6271
✔ Visit one of our local branches
✔ Inquire online to get started
Loan rates and terms may vary. All loans are subject to credit approval.
Have additional questions?
Give us a call at 1.866.839.6271. We are here to help!
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