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Kentucky Mortgage Rates

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Use SmartAsset's mortgage rate comparison tool to compare mortgage rates from the top lenders and find the one that best suits your needs.

Overview of Kentucky Mortgages

Framed by the Ohio River and the Appalachian Mountains, Kentucky is home to the famous Kentucky Derby, world-class bourbon, bluegrass and a multitude of historical events. Homebuyers will find that Kentucky mortgage rates have historically been a bit higher than the national average. The Bluegrass State’s counties’ conforming loan limits are consistent, but a few FHA limits are higher than the standard.

Today's Mortgage Rates in Kentucky

Product Today Last Week Change
30 year fixed 4.18% 4.25% -0.07
15 year fixed 3.56% 3.63% -0.06
5/1 ARM 3.00% 3.00% 0.00
30 yr fixed mtg refi 3.79% 3.79% 0.00
15 yr fixed mtg refi 3.56% 3.63% -0.06
7/1 ARM refi 9.13% 4.75% +4.38
15 yr jumbo fixed mtg refi 3.54% 3.58% -0.04

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Historical Mortgage Rates in Kentucky

Photo Credit: ©iStock.com/alexeys

Kentucky Mortgage Rates Quick Facts

  • Median Home Value: $130,000 (U.S. Census Bureau)
  • Loan Funding Rate: 52.66% (CFPB)
  • Average Mortgage Rate: 4.65% (FHFA)
  • Homeownership Rate: 69.8% (St. Louis Fed)
  • Median Monthly Homeownership Costs: $1,158 (U.S. Census Bureau)

Kentucky mortgage rates are typically just above or around the national average.

A financial advisor in Kentucky can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.

Kentucky Historic Mortgage Rates

YearKentucky RateU.S. Rate
198214.4914.73
198312.5912.26
198412.2511.99
198511.5311.17
198610.059.79
19879.048.95
19889.358.98
198910.229.81
199010.039.74
19919.359.07
19927.867.83
19937.036.93
19947.597.31
19957.767.69
19967.527.58
19977.397.52
19986.916.97
19997.287.14
20008.097.86
20017.006.94
20026.496.44
20035.685.67
20045.715.68
20055.945.85
20066.626.54
20076.486.42
20086.126.06
20095.095.05
20104.844.81
20114.534.56
20123.673.65
20133.863.84
20144.184.13
20153.853.88
20163.773.73
20174.004.03
20184.654.56

Kentucky Mortgages Overview

Property in the Bluegrass State is cheaper overall than in the rest of the nation. The median home value is $130,000, more than $60,000 below the nation’s $193,500 median home value, according to the U.S. Census Bureau.

The conforming loan limit for every Kentucky county is at the standard of $510,400. Most FHA loan limits are $331,760, though in six counties it spikes to $333,500. Those counties are Bullitt, Henry, Jefferson, Oldham, Shelby and Spencer. That is a reflection of the slightly more expensive real estate in those areas.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Adair$510,400$331,760
Allen$510,400$331,760
Anderson$510,400$331,760
Ballard$510,400$331,760
Barren$510,400$331,760
Bath$510,400$331,760
Bell$510,400$331,760
Boone$510,400$331,760
Bourbon$510,400$331,760
Boyd$510,400$331,760
Boyle$510,400$331,760
Bracken$510,400$331,760
Breathitt$510,400$331,760
Breckinridge$510,400$331,760
Bullitt$510,400$333,500
Butler$510,400$331,760
Caldwell$510,400$331,760
Calloway$510,400$331,760
Campbell$510,400$331,760
Carlisle$510,400$331,760
Carroll$510,400$331,760
Carter$510,400$331,760
Casey$510,400$331,760
Christian$510,400$331,760
Clark$510,400$331,760
Clay$510,400$331,760
Clinton$510,400$331,760
Crittenden$510,400$331,760
Cumberland$510,400$331,760
Daviess$510,400$331,760
Edmonson$510,400$331,760
Elliott$510,400$331,760
Estill$510,400$331,760
Fayette$510,400$331,760
Fleming$510,400$331,760
Floyd$510,400$331,760
Franklin$510,400$331,760
Fulton$510,400$331,760
Gallatin$510,400$331,760
Garrard$510,400$331,760
Grant$510,400$331,760
Graves$510,400$331,760
Grayson$510,400$331,760
Green$510,400$331,760
Greenup$510,400$331,760
Hancock$510,400$331,760
Hardin$510,400$331,760
Harlan$510,400$331,760
Harrison$510,400$331,760
Hart$510,400$331,760
Henderson$510,400$331,760
Henry$510,400$333,500
Hickman$510,400$331,760
Hopkins$510,400$331,760
Jackson$510,400$331,760
Jefferson$510,400$333,500
Jessamine$510,400$331,760
Johnson$510,400$331,760
Kenton$510,400$331,760
Knott$510,400$331,760
Knox$510,400$331,760
Larue$510,400$331,760
Laurel$510,400$331,760
Lawrence$510,400$331,760
Lee$510,400$331,760
Leslie$510,400$331,760
Letcher$510,400$331,760
Lewis$510,400$331,760
Lincoln$510,400$331,760
Livingston$510,400$331,760
Logan$510,400$331,760
Lyon$510,400$331,760
Mccracken$510,400$331,760
Mccreary$510,400$331,760
Mclean$510,400$331,760
Madison$510,400$331,760
Magoffin$510,400$331,760
Marion$510,400$331,760
Marshall$510,400$331,760
Martin$510,400$331,760
Mason$510,400$331,760
Meade$510,400$331,760
Menifee$510,400$331,760
Mercer$510,400$331,760
Metcalfe$510,400$331,760
Monroe$510,400$331,760
Montgomery$510,400$331,760
Morgan$510,400$331,760
Muhlenberg$510,400$331,760
Nelson$510,400$331,760
Nicholas$510,400$331,760
Ohio$510,400$331,760
Oldham$510,400$333,500
Owen$510,400$331,760
Owsley$510,400$331,760
Pendleton$510,400$331,760
Perry$510,400$331,760
Pike$510,400$331,760
Powell$510,400$331,760
Pulaski$510,400$331,760
Robertson$510,400$331,760
Rockcastle$510,400$331,760
Rowan$510,400$331,760
Russell$510,400$331,760
Scott$510,400$331,760
Shelby$510,400$333,500
Simpson$510,400$331,760
Spencer$510,400$333,500
Taylor$510,400$331,760
Todd$510,400$331,760
Trigg$510,400$331,760
Trimble$510,400$331,760
Union$510,400$331,760
Warren$510,400$331,760
Washington$510,400$331,760
Wayne$510,400$331,760
Webster$510,400$331,760
Whitley$510,400$331,760
Wolfe$510,400$331,760
Woodford$510,400$331,760

Disclosure laws in Kentucky require that sellers disclose plumbing or electrical problems, roof details, conditions like termites or radon gas, homeowners’ association fees and other property information. Even with those seller disclosures, a home inspection is still the best way for a buyer to feel confident in a property purchase. A quality home inspection will help you attend your closing with confidence, knowing you’re not about to move into a major money pit.

30-Year Fixed Mortgage Rates in Kentucky

If you are in the market for a home loan in Kentucky, you will likely choose a 30-year fixed-rate mortgage, the most common type of home loan. You have 30 years to pay off the loan and your monthly payments will remain the same for the duration of that time as the interest rate stays steady. You generally also have the option of choosing a 15-year or 20-year term in which case you will pay off your loan in less time and your interest rate will be lower, but your monthly payments will be higher.

Kentucky’s average rate for a 30-year fixed mortgage is 3.74%.

Kentucky Jumbo Loan Rates

Kentucky conforming loan limits are uniform at $510,400, which is a reflection of the mostly affordable real estate in the state. If your dream home in Kentucky leads you to take out a loan that is greater than $510,400, be aware that you will have what is considered a jumbo loan. Jumbo loans are loans that exceed the conforming limit in that county.

Conforming loan limits are in place because issuing a loan beyond that price is riskier for lenders, as more money is at stake. To offset that risk, jumbo loans come with higher interest rates. This might be a reason to stick with a home and a mortgage that fits comfortably within your budget.

The average jumbo loan rate in Kentucky is 3.97%.

Kentucky ARM Loan Rates

An adjustable-rate mortgage (ARM) has an interest rate that can change. ARMs are attractive because they usually offers a lower initial interest rate as compared to a fixed-rate mortgage. That lower rate is offered for one, three, five, seven or 10 years, depending on the loan’s terms. Once that period ends, the rate can increase or decrease, but it will generally go up.

Fortunately, the interest rate is capped a certain level in the loan’s term, meaning you will know from the get-go the maximum possible interest rate.

The average rate for a 5/1 ARM in Kentucky is 3.57%.

Kentucky Mortgage Resources

You have resources to choose from if you need assistance purchasing a home in the Bluegrass State. The Kentucky Housing Corporation offers a few different programs for homebuyers:

  • Down Payment and Closing Cost Assistance - Down payments and closing costs can prevent many people from buying a home. The Regular DAP offers assistance via loans up to $6,000, which is repayable over the course of 10 years. This is available to all Kentucky Housing Corporation first-mortgage loan recipients. The Affordable DAP provides assistance up to $4,500 at a lower term rate. Borrowers must meet certain household income limits.
  • Housing Counseling and Education - Counseling and education courses are available for pre-purchase and home buying, preventing mortgage delinquency, improving mortgage terms and home improvement, reserve mortgage and homelessness assistance.

Available Resources

ResourceProblem or IssueWho Qualifies
Kentucky Housing CorporationHomeownership counseling and down payment/closing cost assistance.KHC first mortgage loan recipients and income-eligible applicants.
USDA Rural Development - Single family loansOffers payment assistance to increase an applicant’s repayment ability.Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.

The United States Department of Agriculture Rural Development offers nationwide programs in rural communities that provide aid for safe, affordable housing. Kentucky is eligible as well. Loans and grants are available for people looking to purchase a new home or repair their current home. Check at the start of your home search to see if you qualify for the USDA rural development offers.

Kentucky Mortgage Taxes

Homeowners are allowed to deduct the mortgage interest they pay when they file their federal income taxes. Homeowners in certain states can also include that mortgage interest deduction on their state income taxes. Kentucky is one of those states as its itemized deductions rules follow federal rules closely.

It’s important to note that Kentucky charges a 0.1% real estate transfer tax. This fee is generally paid by sellers.

Kentucky Mortgage Refinance

Kentucky homeowners looking to refinance their mortgage have the option of using a program through the Kentucky Housing Corporation or Fannie Mae.

If you don’t qualify for a state or government program, you can shop for the best refinance lender. Remember, you aren’t obligated to work with the lender who issued your current mortgage. You are free to look around and compare the rates of other lenders to find a new loan that works for your current situation.

Best Places To Get A Mortgage

SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.

Worst
Better
Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment

Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.

To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Sources: Mortgage Bankers Association, US Census Bureau 2017 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset