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Kentucky Mortgage Rates

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

Overview of Kentucky Mortgages

Framed by the Ohio River and Appalachian Mountains, Kentucky is home to the famous Kentucky Derby, world-class bourbon, bluegrass and history. 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 4.75% 4.79% -0.04
15 year fixed 4.25% 4.31% -0.06
5/1 ARM 4.48% 4.40% +0.08
30 yr fixed mtg refi 4.79% 4.79% 0.00
15 yr fixed mtg refi 4.31% 4.31% 0.00
7/1 ARM refi 4.58% 4.56% +0.02
15 yr jumbo fixed mtg refi 4.41% 4.29% +0.12

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Kentucky Mortgage Rates Quick Facts
  • Median Home Value: $138,700 (Zillow)
  • Loan Funding Rate: 59.0% (CFPB)
  • Average Mortgage Rate: 4.00% (Freddie Mac)
  • Homeownership Rate: 71.4% (St. Louis Fed)
  • Median Monthly Homeownership Costs: $1,116 (U.S. Census Bureau)

Historical Mortgage Rates in Kentucky

Kentucky mortgage rates are typically slightly higher than or around the national average.

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

Kentucky Mortgages Overview

Property in the Bluegrass State is cheaper overall than in the rest of the nation. The median home value is $134,000, almost $100,000 below the nation’s $213,000 median home value.

The conforming limit for every Kentucky county is at the standard $453,100. Most FHA loan limits are $294,515, though in seven counties it spikes to $304,750. Those counties are Bullitt, Henry, Jefferson, Oldham, Shelby, Spencer and Trimble. 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$453,100$294,515
Allen$453,100$294,515
Anderson$453,100$294,515
Ballard$453,100$294,515
Barren$453,100$294,515
Bath$453,100$294,515
Bell$453,100$294,515
Boone$453,100$294,515
Bourbon$453,100$294,515
Boyd$453,100$294,515
Boyle$453,100$294,515
Bracken$453,100$294,515
Breathitt$453,100$294,515
Breckinridge$453,100$294,515
Bullitt$453,100$304,750
Butler$453,100$294,515
Caldwell$453,100$294,515
Calloway$453,100$294,515
Campbell$453,100$294,515
Carlisle$453,100$294,515
Carroll$453,100$294,515
Carter$453,100$294,515
Casey$453,100$294,515
Christian$453,100$294,515
Clark$453,100$294,515
Clay$453,100$294,515
Clinton$453,100$294,515
Crittenden$453,100$294,515
Cumberland$453,100$294,515
Daviess$453,100$294,515
Edmonson$453,100$294,515
Elliott$453,100$294,515
Estill$453,100$294,515
Fayette$453,100$294,515
Fleming$453,100$294,515
Floyd$453,100$294,515
Franklin$453,100$294,515
Fulton$453,100$294,515
Gallatin$453,100$294,515
Garrard$453,100$294,515
Grant$453,100$294,515
Graves$453,100$294,515
Grayson$453,100$294,515
Green$453,100$294,515
Greenup$453,100$294,515
Hancock$453,100$294,515
Hardin$453,100$294,515
Harlan$453,100$294,515
Harrison$453,100$294,515
Hart$453,100$294,515
Henderson$453,100$294,515
Henry$453,100$304,750
Hickman$453,100$294,515
Hopkins$453,100$294,515
Jackson$453,100$294,515
Jefferson$453,100$304,750
Jessamine$453,100$294,515
Johnson$453,100$294,515
Kenton$453,100$294,515
Knott$453,100$294,515
Knox$453,100$294,515
Larue$453,100$294,515
Laurel$453,100$294,515
Lawrence$453,100$294,515
Lee$453,100$294,515
Leslie$453,100$294,515
Letcher$453,100$294,515
Lewis$453,100$294,515
Lincoln$453,100$294,515
Livingston$453,100$294,515
Logan$453,100$294,515
Lyon$453,100$294,515
Mccracken$453,100$294,515
Mccreary$453,100$294,515
Mclean$453,100$294,515
Madison$453,100$294,515
Magoffin$453,100$294,515
Marion$453,100$294,515
Marshall$453,100$294,515
Martin$453,100$294,515
Mason$453,100$294,515
Meade$453,100$294,515
Menifee$453,100$294,515
Mercer$453,100$294,515
Metcalfe$453,100$294,515
Monroe$453,100$294,515
Montgomery$453,100$294,515
Morgan$453,100$294,515
Muhlenberg$453,100$294,515
Nelson$453,100$294,515
Nicholas$453,100$294,515
Ohio$453,100$294,515
Oldham$453,100$304,750
Owen$453,100$294,515
Owsley$453,100$294,515
Pendleton$453,100$294,515
Perry$453,100$294,515
Pike$453,100$294,515
Powell$453,100$294,515
Pulaski$453,100$294,515
Robertson$453,100$294,515
Rockcastle$453,100$294,515
Rowan$453,100$294,515
Russell$453,100$294,515
Scott$453,100$294,515
Shelby$453,100$304,750
Simpson$453,100$294,515
Spencer$453,100$304,750
Taylor$453,100$294,515
Todd$453,100$294,515
Trigg$453,100$294,515
Trimble$453,100$304,750
Union$453,100$294,515
Warren$453,100$294,515
Washington$453,100$294,515
Wayne$453,100$294,515
Webster$453,100$294,515
Whitley$453,100$294,515
Wolfe$453,100$294,515
Woodford$453,100$294,515

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 mortgage rate for 30-year fixed-rate mortgages is 4.8%.

Kentucky Jumbo Loan Rates

Kentucky conforming loan limits are uniform at $453,100, 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 $453,100, 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 4.5%.

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 an ARM in Kentucky is 4.5%.

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

Resource Problem or Issue Who Qualifies Website
Kentucky Housing Corporation Homeownership counseling and down payment/closing cost assistance. KHC first mortgage loan recipients and income-eligible applicants. http://www.kyhousing.org/Pages/default.aspx
USDA Rural Development - Single family loans Offers 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. http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs
Home Affordable Refinance Program Refinancing. Single-family homes and condos that fit within lending loan limits. http://www.harp.gov/

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 HARP (if eligible).

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 2016 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset