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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, as are their FHA limits.

Today's Mortgage Rates in Kentucky

Product Today Last Week Change
30 year fixed 3.42% 3.63% -0.21
15 year fixed 2.81% 2.72% +0.09
5/1 ARM 3.00% 3.00% 0.00
30 yr fixed mtg refi 3.42% 3.65% -0.23
15 yr fixed mtg refi 2.92% 2.88% +0.05
7/1 ARM refi 3.63% 3.63% 0.00
15 yr jumbo fixed mtg refi 3.13% 3.13% 0.00

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: $151,700 (U.S. Census Bureau)
  • Loan Funding Rate: 55.17% (CFPB)
  • Homeownership Rate: 69.5% (St. Louis Fed)
  • Median Monthly Homeownership Costs: $1,178 (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
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

*The FHFA stopped reporting new data in 2018.

Kentucky Mortgages Overview

Property in the Bluegrass State is cheaper overall than in the rest of the nation. The median home value is $151,700, more than $88,000 below the nation’s $240,500 median home value, according to the U.S. Census Bureau.

The conforming loan limit for every Kentucky county is at the standard of $548,250. All FHA loan limits are $356,362.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Adair$548,250$356,362
Allen$548,250$356,362
Anderson$548,250$356,362
Ballard$548,250$356,362
Barren$548,250$356,362
Bath$548,250$356,362
Bell$548,250$356,362
Boone$548,250$356,362
Bourbon$548,250$356,362
Boyd$548,250$356,362
Boyle$548,250$356,362
Bracken$548,250$356,362
Breathitt$548,250$356,362
Breckinridge$548,250$356,362
Bullitt$548,250$356,362
Butler$548,250$356,362
Caldwell$548,250$356,362
Calloway$548,250$356,362
Campbell$548,250$356,362
Carlisle$548,250$356,362
Carroll$548,250$356,362
Carter$548,250$356,362
Casey$548,250$356,362
Christian$548,250$356,362
Clark$548,250$356,362
Clay$548,250$356,362
Clinton$548,250$356,362
Crittenden$548,250$356,362
Cumberland$548,250$356,362
Daviess$548,250$356,362
Edmonson$548,250$356,362
Elliott$548,250$356,362
Estill$548,250$356,362
Fayette$548,250$356,362
Fleming$548,250$356,362
Floyd$548,250$356,362
Franklin$548,250$356,362
Fulton$548,250$356,362
Gallatin$548,250$356,362
Garrard$548,250$356,362
Grant$548,250$356,362
Graves$548,250$356,362
Grayson$548,250$356,362
Green$548,250$356,362
Greenup$548,250$356,362
Hancock$548,250$356,362
Hardin$548,250$356,362
Harlan$548,250$356,362
Harrison$548,250$356,362
Hart$548,250$356,362
Henderson$548,250$356,362
Henry$548,250$356,362
Hickman$548,250$356,362
Hopkins$548,250$356,362
Jackson$548,250$356,362
Jefferson$548,250$356,362
Jessamine$548,250$356,362
Johnson$548,250$356,362
Kenton$548,250$356,362
Knott$548,250$356,362
Knox$548,250$356,362
Larue$548,250$356,362
Laurel$548,250$356,362
Lawrence$548,250$356,362
Lee$548,250$356,362
Leslie$548,250$356,362
Letcher$548,250$356,362
Lewis$548,250$356,362
Lincoln$548,250$356,362
Livingston$548,250$356,362
Logan$548,250$356,362
Lyon$548,250$356,362
Mccracken$548,250$356,362
Mccreary$548,250$356,362
Mclean$548,250$356,362
Madison$548,250$356,362
Magoffin$548,250$356,362
Marion$548,250$356,362
Marshall$548,250$356,362
Martin$548,250$356,362
Mason$548,250$356,362
Meade$548,250$356,362
Menifee$548,250$356,362
Mercer$548,250$356,362
Metcalfe$548,250$356,362
Monroe$548,250$356,362
Montgomery$548,250$356,362
Morgan$548,250$356,362
Muhlenberg$548,250$356,362
Nelson$548,250$356,362
Nicholas$548,250$356,362
Ohio$548,250$356,362
Oldham$548,250$356,362
Owen$548,250$356,362
Owsley$548,250$356,362
Pendleton$548,250$356,362
Perry$548,250$356,362
Pike$548,250$356,362
Powell$548,250$356,362
Pulaski$548,250$356,362
Robertson$548,250$356,362
Rockcastle$548,250$356,362
Rowan$548,250$356,362
Russell$548,250$356,362
Scott$548,250$356,362
Shelby$548,250$356,362
Simpson$548,250$356,362
Spencer$548,250$356,362
Taylor$548,250$356,362
Todd$548,250$356,362
Trigg$548,250$356,362
Trimble$548,250$356,362
Union$548,250$356,362
Warren$548,250$356,362
Washington$548,250$356,362
Wayne$548,250$356,362
Webster$548,250$356,362
Whitley$548,250$356,362
Wolfe$548,250$356,362
Woodford$548,250$356,362

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 2.87% (Zillow, Jan. 2021).

Kentucky Jumbo Loan Rates

Kentucky conforming loan limits are uniform at $548,250, 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 $548,250, 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 can 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 2.63% (Zillow, Jan. 2021).

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 3.24% (Zillow, Jan. 2021).

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

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

Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.

To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for 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 mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of 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, 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 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset