Interest Rate
4.817%
APR*
4.899%
Average home price
$146.871

Your next home could be under the blue moon of Kentucky, if you play your cards right and review Kentucky mortgage rates before you commit. Look with a critical eye at your finances, and see what your credit score, income, debt-to-income ratio, and down payment options look like from a lender point of view.

You can try to get the best mortgage rate in Kentucky, by doing a few things before you apply with a reputable lender for preapproval. Get copies of your credit report to check for any indiscrepancies, and find all of your recent bank statements and pay stubs so you can support your application.

Here’s a quick look at current Kentucky mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 4.817% 4.899% -0.03%
Conventional 20 year fixed 4.499% 4.622% Unchanged
Conventional 15 year fixed 4.147% 4.319% +0.04%
Conventional 10 year fixed 3.812% 4% -0.43%
Conventional 7 year ARM 4.922% 4.154% +0.08%
Conventional 5 year ARM 4.328% 4.068% -0.5%
FHA 30 year fixed 3.945% 4.752% +0.01%
VA 30 year fixed 4.199% 4.276% Unchanged
VA 15 year fixed 4.083% 4.326% -0.11%

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Kentucky

Kentucky is known as the Bluegrass State, and just the thought of the region brings to mind sprawling horse ranches and dueling banjos. The state capital is Frankfort.

Kentucky’s population is just under 4.4 million people, and one in ten live in the state’s top six cities:

  • Louisville
  • Lexington-Fayette
  • Bowling Green
  • Owensboro
  • Covington
  • Richmond

Shopping for a home to buy in Kentucky can be an enlightening process. Kentucky ranks 42nd in US homes for sale at average price, and 36th for homes over $1,000,000. Getting preapproved before you attend open houses can help you narrow down the houses on the market to ones you can actually afford.

First-time Homebuyers

An eager first-time home buyer can get some help with their purchase from a program administered by the Kentucky Housing Corporation (KHC).

KHC offers down payment assistance on homes within price parameters for the state (variable by county), and gives you a fixed interest rate. There is no minimum borrower contribution, and you can receive a discount on mortgage insurance premiums.

To qualify, you’ll need to:

  • Put down at least 3% (can have assistance)
  • Have a credit score of at least 660
  • Have a DTI ratio no greater than 40%-50%
  • Complete a homebuyers education course
  • Be at or below 80% of the area median income (AMI) rate

Refinancing in Kentucky

A low Kentucky mortgage rate can be a terrific reason to finally refinance your home. You can do any of the following:

  • Reduce how much interest you pay over the term of the loan
  • Drop your monthly payment with a longer loan term
  • Cash-out equity to use for another purpose
  • Subtract private mortgage insurance (PMI) payments from your monthly costs

Wondering about a streamlined refinance? You’ll need to find out if you have the right type of loan. Ask your lender for more information.

GUIDES

Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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