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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 4.75% 4.38% +0.38
15 year fixed 4.00% 3.63% +0.38
5/1 ARM 4.63% 2.00% +2.63
30 yr fixed mtg refi 5.99% 5.88% +0.12
15 yr fixed mtg refi 5.10% 5.24% -0.14
7/1 ARM refi 4.75% 4.75% 0.00
15 yr jumbo fixed mtg refi 3.05% 3.10% -0.05

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: 59.00% (CFPB)
  • Homeownership Rate: 72.5% (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 $647,200. All FHA loan limits are $420,680.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Adair$647,200$420,680
Allen$647,200$420,680
Anderson$647,200$420,680
Ballard$647,200$420,680
Barren$647,200$420,680
Bath$647,200$420,680
Bell$647,200$420,680
Boone$647,200$420,680
Bourbon$647,200$420,680
Boyd$647,200$420,680
Boyle$647,200$420,680
Bracken$647,200$420,680
Breathitt$647,200$420,680
Breckinridge$647,200$420,680
Bullitt$647,200$420,680
Butler$647,200$420,680
Caldwell$647,200$420,680
Calloway$647,200$420,680
Campbell$647,200$420,680
Carlisle$647,200$420,680
Carroll$647,200$420,680
Carter$647,200$420,680
Casey$647,200$420,680
Christian$647,200$420,680
Clark$647,200$420,680
Clay$647,200$420,680
Clinton$647,200$420,680
Crittenden$647,200$420,680
Cumberland$647,200$420,680
Daviess$647,200$420,680
Edmonson$647,200$420,680
Elliott$647,200$420,680
Estill$647,200$420,680
Fayette$647,200$420,680
Fleming$647,200$420,680
Floyd$647,200$420,680
Franklin$647,200$420,680
Fulton$647,200$420,680
Gallatin$647,200$420,680
Garrard$647,200$420,680
Grant$647,200$420,680
Graves$647,200$420,680
Grayson$647,200$420,680
Green$647,200$420,680
Greenup$647,200$420,680
Hancock$647,200$420,680
Hardin$647,200$420,680
Harlan$647,200$420,680
Harrison$647,200$420,680
Hart$647,200$420,680
Henderson$647,200$420,680
Henry$647,200$420,680
Hickman$647,200$420,680
Hopkins$647,200$420,680
Jackson$647,200$420,680
Jefferson$647,200$420,680
Jessamine$647,200$420,680
Johnson$647,200$420,680
Kenton$647,200$420,680
Knott$647,200$420,680
Knox$647,200$420,680
Larue$647,200$420,680
Laurel$647,200$420,680
Lawrence$647,200$420,680
Lee$647,200$420,680
Leslie$647,200$420,680
Letcher$647,200$420,680
Lewis$647,200$420,680
Lincoln$647,200$420,680
Livingston$647,200$420,680
Logan$647,200$420,680
Lyon$647,200$420,680
Mccracken$647,200$420,680
Mccreary$647,200$420,680
Mclean$647,200$420,680
Madison$647,200$420,680
Magoffin$647,200$420,680
Marion$647,200$420,680
Marshall$647,200$420,680
Martin$647,200$420,680
Mason$647,200$420,680
Meade$647,200$420,680
Menifee$647,200$420,680
Mercer$647,200$420,680
Metcalfe$647,200$420,680
Monroe$647,200$420,680
Montgomery$647,200$420,680
Morgan$647,200$420,680
Muhlenberg$647,200$420,680
Nelson$647,200$420,680
Nicholas$647,200$420,680
Ohio$647,200$420,680
Oldham$647,200$420,680
Owen$647,200$420,680
Owsley$647,200$420,680
Pendleton$647,200$420,680
Perry$647,200$420,680
Pike$647,200$420,680
Powell$647,200$420,680
Pulaski$647,200$420,680
Robertson$647,200$420,680
Rockcastle$647,200$420,680
Rowan$647,200$420,680
Russell$647,200$420,680
Scott$647,200$420,680
Shelby$647,200$420,680
Simpson$647,200$420,680
Spencer$647,200$420,680
Taylor$647,200$420,680
Todd$647,200$420,680
Trigg$647,200$420,680
Trimble$647,200$420,680
Union$647,200$420,680
Warren$647,200$420,680
Washington$647,200$420,680
Wayne$647,200$420,680
Webster$647,200$420,680
Whitley$647,200$420,680
Wolfe$647,200$420,680
Woodford$647,200$420,680

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 3.37% (Zillow, Feb. 2022).

Kentucky Jumbo Loan Rates

Kentucky conforming loan limits are uniform at $647,200, 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 $647,200 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 3.29% (Zillow, Feb. 2022).

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 2.88% (Zillow, Feb. 2022).

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.