Loading
Tap on the profile icon to edit
your financial details.

Kentucky Mortgage Rates

Your Details Done

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. It is the 26th most populous state in the nation. 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

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
Details
Add your details
Purchase or Refinance
Select Purchase or Refinance
Do this later
Dismiss
Add your details
Location
Location
Enter your location Do this later
Dismiss
Add your details
Target Home Price
Target Home Value
Enter target home value
Do this later
Dismiss
Add your details
Down Payment
Down Payment
Enter down payment
$0
Do this later
Dismiss
Add your details
Current Home Value
Current Home Value
Enter current home value
Do this later
Dismiss
Add your details
Current Mortgage Balance
Current Mortgage Balance
Enter current mortgage balance
Do this later
Dismiss
Add your details
Credit Score
Credit Rating
Select Your Credit Rating Do this later
Dismiss
Update your information here.
OK
Filter Results
FHA/VA Loans
Filter Results
Loan Type
Property Type
Points
15 yr Fixed... 30 yr Fixed... 3/1 ARM... 5/1 ARM... 7/1 ARM...
Property Type Single Family Condo Multi Unit
Points 0 points 1 or less 2 or less 3 or less 4 or less
FHA/VA Loans
Loan Type




Property Type


Points





Loan Type
APR
Payment
Get the right rate and loan for your needs
Our Home Loan Experts can help you today.
Advertisement
Veterans: Ready to Buy a Home?
Discover the powerful homebuying benefits of a $0 Down VA Home Loan.
No mortgages found. Please change your search criteria and try again.
Searching for Mortgages...
Disclosure
How helpful was this page in answering your question?
not helpful
very helpful
​If you could change one thing about ​this page what would it be?​
Thank you for your answer! Your feedback is very important to us.
We are working hard to improve our product and could use your help!
We pay $30 for 30 minutes on the phone to hear your thoughts on what we can do better.
Please enter your email if you'd like to be contacted to help.

Please enter your name
Photo Credit: ©iStock.com/alexeys
Kentucky Mortgage Rates Quick Facts
  • Average Home Value: $130,000 (zillow.com)
  • Loan Funding Rate: 59%
  • Average Mortgage Rate: 4%
  • Homeownership Rate: 67.9% (St. Louis Fed)
  • Average Annual Mortgage Payment: $5,958

Historical Mortgage Rates in Kentucky

Kentucky mortgage rates are typically slightly higher than or around the national average. Current 2016 Kentucky mortgage rates are following that trend.

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

Kentucky Mortgages Overview

Property in the Bluegrass State is cheaper overall than the nation’s average. The average single-family home is $161,250, which is below the nation’s average of $236,450, according to Zillow.

Kentucky Mortgage Rates

Single-Family Homes
Percentage of Homes94.50%
Average Property Value$94,495.42
Condominiums
Percentage of Homes3.80%
Average Property Value$100,262.35
PUD Homes
Percentage of Homes0.90%
Average Property Value$116,513.46
Townhomes
Percentage of Homes0.80%
Average Property Value$75,981.67

The conforming limit for every Kentucky county is at the standard $417,000. Most FHA loan limits are $271,050, though in seven counties it spikes to $287,500. 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$417,000$271,050
Allen$417,000$271,050
Anderson$417,000$271,050
Ballard$417,000$271,050
Barren$417,000$271,050
Bath$417,000$271,050
Bell$417,000$271,050
Boone$417,000$271,050
Bourbon$417,000$271,050
Boyd$417,000$271,050
Boyle$417,000$271,050
Bracken$417,000$271,050
Breathitt$417,000$271,050
Breckinridge$417,000$271,050
Bullitt$417,000$287,500
Butler$417,000$271,050
Caldwell$417,000$271,050
Calloway$417,000$271,050
Campbell$417,000$271,050
Carlisle$417,000$271,050
Carroll$417,000$271,050
Carter$417,000$271,050
Casey$417,000$271,050
Christian$417,000$271,050
Clark$417,000$271,050
Clay$417,000$271,050
Clinton$417,000$271,050
Crittenden$417,000$271,050
Cumberland$417,000$271,050
Daviess$417,000$271,050
Edmonson$417,000$271,050
Elliott$417,000$271,050
Estill$417,000$271,050
Fayette$417,000$271,050
Fleming$417,000$271,050
Floyd$417,000$271,050
Franklin$417,000$271,050
Fulton$417,000$271,050
Gallatin$417,000$271,050
Garrard$417,000$271,050
Grant$417,000$271,050
Graves$417,000$271,050
Grayson$417,000$271,050
Green$417,000$271,050
Greenup$417,000$271,050
Hancock$417,000$271,050
Hardin$417,000$271,050
Harlan$417,000$271,050
Harrison$417,000$271,050
Hart$417,000$271,050
Henderson$417,000$271,050
Henry$417,000$287,500
Hickman$417,000$271,050
Hopkins$417,000$271,050
Jackson$417,000$271,050
Jefferson$417,000$287,500
Jessamine$417,000$271,050
Johnson$417,000$271,050
Kenton$417,000$271,050
Knott$417,000$271,050
Knox$417,000$271,050
Larue$417,000$271,050
Laurel$417,000$271,050
Lawrence$417,000$271,050
Lee$417,000$271,050
Leslie$417,000$271,050
Letcher$417,000$271,050
Lewis$417,000$271,050
Lincoln$417,000$271,050
Livingston$417,000$271,050
Logan$417,000$271,050
Lyon$417,000$271,050
McCracken$417,000$271,050
McCreary$417,000$271,050
McLean$417,000$271,050
Madison$417,000$271,050
Magoffin$417,000$271,050
Marion$417,000$271,050
Marshall$417,000$271,050
Martin$417,000$271,050
Mason$417,000$271,050
Meade$417,000$271,050
Menifee$417,000$271,050
Mercer$417,000$271,050
Metcalfe$417,000$271,050
Monroe$417,000$271,050
Montgomery$417,000$271,050
Morgan$417,000$271,050
Muhlenberg$417,000$271,050
Nelson$417,000$271,050
Nicholas$417,000$271,050
Ohio$417,000$271,050
Oldham$417,000$287,500
Owen$417,000$271,050
Owsley$417,000$271,050
Pendleton$417,000$271,050
Perry$417,000$271,050
Pike$417,000$271,050
Powell$417,000$271,050
Pulaski$417,000$271,050
Robertson$417,000$271,050
Rockcastle$417,000$271,050
Rowan$417,000$271,050
Russell$417,000$271,050
Scott$417,000$271,050
Shelby$417,000$287,500
Simpson$417,000$271,050
Spencer$417,000$287,500
Taylor$417,000$271,050
Todd$417,000$271,050
Trigg$417,000$271,050
Trimble$417,000$287,500
Union$417,000$271,050
Warren$417,000$271,050
Washington$417,000$271,050
Wayne$417,000$271,050
Webster$417,000$271,050
Whitley$417,000$271,050
Wolfe$417,000$271,050
Woodford$417,000$271,050

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. These are the most common type of home mortgages. 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 also have the option of choosing a 15-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. 40-year fixed rate mortgages also exist but often people feel like that term is too long, and you will also end up paying more in interest.

The average Kentucky mortgage rate for fixed-rate 30-year mortgages is 4.12%.

Kentucky Jumbo Loan Rates

Kentucky conforming loan limits are uniform at $417,000, 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 $417,000, 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 3.75%.

Kentucky ARM Loan Rates

An adjustable-rate mortgage – or ARM – stands in contrast to a fixed-rate mortgage because its rate can change over the duration of the loan. An ARM 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.

There is a check in place to prevent an ARM’s interest from jumping to a level that is off-the-charts high overnight. 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. So before choosing an ARM, it is crucial to assess whether the highest possible interest rate is one that you can afford to pay.

The average rate for an ARM in Kentucky is 2.5%.

Kentucky Mortgage Resources

Do you need assistance purchasing a home in the Bluegrass State? There are resources out there to help you in your mortgage process.

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 QualifiesWebsite
Kentucky Housing CorporationHomeownership 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 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.http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs
Home Affordable Refinance ProgramRefinancing.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 (up to $1,000,000.) 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.

Kentucky Mortgage Refinance

Kentucky homeowners who want to refinance have the option of the state’s Home Affordable Refinance Program. The Kentucky HARP accepts single family homes and condos, and offers access to payment reductions and low closing costs.

The Kentucky Housing Corporation also offers refinance options.

Remember that when you decide to refinance, you don’t have 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 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset