Kentucky Mortgage and Refinance Rates

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Point of Interest

Buying a home in Kentucky can find you lower-than-average home prices and competitive interest rates on mortgages for a great deal (the median home price is just $149,900) and low mortgage rates (between 3.00% to 3.88%).

Use our mortgage calculator to find the right mortgage for your income.

TermRateRate Last Week
30-year fixed3.83%3.84%
30-year refinance3.85%3.85%
15-year fixed3.32%3.34%
5/1 ARM3.96%4.00%
30-year fixed jumbo4.13%4.22%
 

Average mortgage rates across the United States are at a near a historic low of 3.24%, and the mortgage rates Kentucky offers come in right around there. You can expect similar rates when you buy a house in the state. Refinance rates Kentucky provides are also along the same lines. The current mortgage rates Kentucky has, along with the hot real estate market in the state, make it an enticing place to buy a property.

Getting a mortgage in Kentucky

Getting a mortgage or qualifying to refinance your mortgage is more difficult during the COVID-19 crisis, no matter which state you live in. However, Kentucky’s home prices are much lower than the nationwide average of $248,857. You could save an average of nearly $100,000 by buying in Kentucky. That fact lowers the barriers to entry on homeownership significantly and will help you pay off your mortgage more quickly.

Mortgage rates are low in Kentucky, as well. Plus, more people own homes in Kentucky than on average across the country. The homeownership rate across the nation as a whole is 65.3%. This statistic suggests it’s easier to buy a home in Kentucky than elsewhere in the U.S.

  1. Median home price: $135,500
  2. Average 30-year fixed rate: 3.83%
  3. Median monthly mortgage cost: $1,158
  4. Homeownership rate: 67%

Kentucky mortgage rate trends

The mortgage rates Kentucky offers have been trending downward the past several years. If you got a new mortgage in Kentucky in 2018, your interest might have been as high as nearly 5% for a 30-year fixed loan. It would have hovered around 4.25% for a 15-year fixed loan. If you had put less than 5% down, you could have paid around 5.10% for a 30-year fixed loan. These facts are correct if your credit score was over 680. If it was lower than that, a 30-year fixed mortgage in Kentucky could have rates around 5.8%.

If you refinanced instead, you would find similar rates in 2018. You would have paid around 4.8% for a 30-year fixed loan and about 4% for a 15-year mortgage. These rates are valid with a 740 or higher credit score. Since 2018, all these rates have declined.

Kentucky current mortgage rates

Currently, you could expect between 3.00% to 3.88% for a mortgage rate in Kentucky. This statistic is similar to the average rate across the nation, and it’s quite low. It’s near-record low, which is why a lot of people are buying houses at the moment.

This rate is significantly lower than even a few years ago, and many experts predict they will continue to fall across the country. After we make it out of the coronavirus pandemic, we could be seeing even lower mortgage interest rates in Kentucky and elsewhere. To find the monthly prices you can expect, try our mortgage calculator.

Most and least expensive places to live in Kentucky

How expensive it is to live across Kentucky varies depending on the cost of living — including home prices and the cost of maintaining your home — compared to the average income available for the area. If you make less money and spend a more substantial portion of your income in a given area, it costs more to live in the area. Kentucky’s most expensive places to live have a high home price to income ratio, while the reverse is true for its least expensive locations.

5 most expensive

  1. Pike County Pikeville is the most expensive city to live in Kentucky based on its home price to income ratio and other data.
  2. Calloway County — The city of Murray has the highest home price to income ratio in Kentucky.
  3. Madison County — Both Richmond and Eastern Kentucky University call this county home, and its home price to income ratio is the sixth-highest in the state.
  4. Jefferson County — This county holds the city of St. Matthews and has the 13th-highest home price to income ratio in the state.
  5. Woodford County — It’s near Lexington and holds the city of Versailles, as well as the fifth-highest home price to income ratio in Kentucky.

5 least expensive

  1. Caldwell County This rural area in the western part of the state holds the small city of Princeton and has the lowest home price to income ratio statewide.
  2. Muhlenberg County — This county is in a rural area northeast of Bowling Green and has the second-lowest house price to income ratio in Kentucky.
  3. Greenup County — The city of Flatwoods calls this county home, which has the third-lowest home price to income ratio in the state.
  4. Campbell County As a suburb of Cincinnati, residents can enjoy the city while also relishing having the tenth-lowest home price to income ratio in Kentucky.
  5. Nelson County — This county holds Bardstown, just south of Louisville. Also, it celebrates the sixteenth-lowest home price to income ratio in the state.

Kentucky mortgage resources and intricacies

The Kentucky Housing Corporation is a fantastic resource on loan programs in the state, and the Kentucky Homeownership Protection Center helps if you’re facing possible foreclosure. The U.S. Department of Housing and Urban Development also gives grants and runs homeowner assistance programs in Kentucky.

Additionally, Kentucky has the fifth-lowest property taxes in the nation, which should help make your mortgage a little more affordable. The application process in Kentucky is similar to other states when you’re looking for a mortgage. Also, there’s little difference in refinancing in Kentucky when compared with other U.S. states.

The final word

The current mortgage rates Kentucky offers are on par with the rest of the nation. Although the mortgage rates Kentucky has are similar to the rest of the U.S., home prices are significantly lower. Therefore, even if you’re looking at refinance rates, Kentucky could be the perfect place to buy a home and settle down.

Tiffany Verbeck

Personal Finance Contributor

Tiffany Verbeck is a personal finance expert. She uses her storytelling skills gained from a master’s degree in writing to run a freelancing business focused on helping people make and manage their money.