Mortgage rates in Kentucky
30-yr fixed 7.18% · Freddie Mac PMMS, week of Nov 5, 2026 · APR benchmark 7.19% (APOR for locks from Nov 9, 2026) · Last reviewed Oct 18, 2026 by the Editorial Team
Kentucky is among the more affordable states for first-time buyers.
Mortgage rates today by loan type
These are national averages. Lenders in Kentucky price off the same national market, so treat them as a benchmark: your quote depends on your credit, down payment, loan size and points. The APR benchmark folds in typical points and fees, so it shows what a prime borrower's APR looks like this week.
| Loan type | Avg rate | APR benchmarkAPOR | Source · as of | What it measures |
|---|---|---|---|---|
| 30-year fixed | 7.18% | 7.19% | Freddie Mac PMMSNov 5, 2026 | Conventional purchase loans, 20% down, strong credit; weekly survey |
| 20-year fixed | 6.66% | 6.93% | Zillow (via NerdWallet)Nov 6, 2026 | Lender-quoted average; checked by hand every two weeks |
| 15-year fixed | 6.57% | 6.67% | Freddie Mac PMMSNov 5, 2026 | Conventional purchase loans, 20% down, strong credit; weekly survey |
| 10-year fixed | 6.31% | 6.82% | Zillow (via NerdWallet)Nov 6, 2026 | Lender-quoted average; checked by hand every two weeks |
| 5-year ARM | 6.73% | 6.67% | Zillow (via NerdWallet)Nov 6, 2026 | Fixed for 5 years, then adjusts; APOR = prime ARM benchmark |
| 7-year ARM | — | 6.50% | APOR, locks from Nov 9, 2026 | No free rate series; APOR benchmark only |
| 10-year ARM | — | 6.63% | APOR, locks from Nov 9, 2026 | No free rate series; APOR benchmark only |
| FHA 30-year | 6.89% | — | Optimal Blue OBMMINov 5, 2026 | Locked FHA loans, all credit profiles; daily |
| VA 30-year | 6.71% | — | Optimal Blue OBMMINov 5, 2026 | Locked VA loans; daily |
| USDA 30-year | 6.86% | — | Optimal Blue OBMMINov 5, 2026 | Locked USDA loans; daily |
| Jumbo 30-year | 7.25% | — | Optimal Blue OBMMINov 5, 2026 | Locked loans above the conforming limit; daily |
APR benchmark = FFIEC/CFPB Average Prime Offer Rate for rate locks in the week starting Nov 9, 2026 (published in advance): a prime borrower's APR including typical points and fees. It is not a quote; your APR depends on credit, down payment and the points you pay. APOR is not published for FHA, VA, USDA or jumbo loans.
Calculate your Kentucky mortgage payment
The calculator starts from Kentucky's median list price, 20% down, the state's 0.74% effective property tax, its median insurance premium and its average closing costs. Switch to FHA or VA, change the down payment, or pick your county to set its conforming limit. For the month-by-month split of principal and interest, open the principal-and-interest schedule. To see how Kentucky's property tax and insurance compare with every other state, try the calculator with state tax and insurance.
Kentucky vs. the U.S.
Kentucky's median list price is 28% below the U.S. median, so at the same 7.18% rate the principal and interest on a 20%-down loan runs $623 a month less. Five-year price growth here was the 18th-fastest of 51 jurisdictions.
| Measure | Kentucky | U.S. |
|---|---|---|
| Median list priceRealtor.com, Oct 2026 | $300,000 | $415,000 |
| Principal + interest, 20% down30-yr avg 7.18% | $1,626 | $2,249 |
| Average home-purchase loanHMDA 2025 | $282,545 | $404,828 |
| Average closing costsincl. transfer taxes | $2,475 | $4,661 |
| Median conventional rate paid2025 purchase loans | 6.63% | 6.50% |
| Mortgage approval rateHMDA 2025 | 75.5% | 76.6% |
| Home values, 1 yearFHFA index, Q2 2026 | +4.7% | +3.0% |
| Home values, 5 yearsFHFA index, Q2 2026 | +45.8% | +41.3% |
What Kentucky borrowers actually paid in 2025
This is the state-specific part. Federal HMDA records show the rate and costs on every Kentucky home-purchase loan closed in 2025. We compare like with like: 30-year fixed, first-lien, one-unit primary homes. On conventional loans, Kentucky borrowers paid 0.05 percentage points above the market benchmark at lock, the 14th-highest of all 50 states and the District of Columbia.
| 2025 purchase loans | Median rateKY · U.S. | Over benchmarkKY · U.S. | Closing costsKY · U.S. | Paid pointsshare of loans | Median downequity on refis · KY |
|---|---|---|---|---|---|
| Conventional 30-yr fixed (conforming, 20%+ down)8,164 loans | 6.63%6.50% | +0.05+0.02 | $3,983$5,476 | 50.4%53.2% | 23.5% |
| Jumbo 30-yr fixed (20%+ down)59 loans | 6.63%6.63% | +0.16+0.00 | $7,538$10,251 | 25.4%38.4% | 20.1% |
| FHA 30-yr fixed7,951 loans | 6.28%6.25% | +0.53+0.42 | $9,049$11,291 | 49.0%59.3% | 3.5% |
| VA 30-yr fixed3,796 loans | 6.25%6.13% | −0.20−0.36 | $5,190$6,554 | 58.5%59.3% | 0% |
| Conventional rate-and-term refinance1,808 loans | 6.38%6.38% | −0.02−0.06 | $3,565$4,390 | 43.4%45.4% | 32.4% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), medians. "Over benchmark" = rate spread, the APR minus APOR on the lock date, which removes the effect of when each loan locked. Closing costs = total loan costs on the Closing Disclosure. HMDA has no credit scores, so these are what borrowers paid, not what you will be offered. See the lenders active in Kentucky and what their borrowers paid.
Kentucky's biggest conventional lenders: what their borrowers paid
The 8 largest conventional lenders in Kentucky by 2025 purchase loans, out of 623 that made one. Each row is the median for that lender's comparable loans here: 30-year fixed, conforming, 20% or more down. A lower figure over the benchmark means cheaper pricing for the same week.
| Lender | 2025 loansshare in KY | Median rate | Over benchmark | Originationmedian | Paid pointsshare · median | Median down |
|---|---|---|---|---|---|---|
| United Wholesale Mortgage | 1,9775.9% | 6.62% | +0.04 | $2,174 | 52%$1,259 | 25% |
| Rocket Mortgage | 1,2043.6% | 6.63% | +0.09 | $2,092 | 64%$1,956 | 23% |
| Vanderbilt Mortgage And Finance, Inc. | 1,0853.2% | 6.06% | −0.25 | $2,923 | 82%$6,302 | 25% |
| Stockton Mortgage Corporation | 9822.9% | 6.63% | +0.14 | $2,345 | 74%$1,296 | 25% |
| U.S. Bank | 9702.9% | 6.63% | +0.03 | $1,295 | 43%$515 | 23.3% |
| Stock Yards Bank & Trust Company | 7452.2% | 6.63% | +0.02 | $995 | 48%$713 | 25.5% |
| Liberty | 7372.2% | 6.50% | +0.02 | $849 | 36%$578 | 20.1% |
| Guardian Savings Bank | 6371.9% | 6.63% | −0.01 | $1,169 | 6%$1,250 | 20% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), lenders with at least 30 comparable loans in Kentucky. Minimum credit scores are not shown here: conventional loans usually start at 620 (a lender floor; Fannie Mae's automated underwriting sets none), FHA 580 (500 with 10% down), VA none set by VA (lenders often 620). HMDA has no credit scores, so a lender's medians reflect its own mix of borrowers. FHA and VA lenders: Kentucky lender rankings.
How rates have moved
Weekly national averages over the past 30 days to 5 years. The 30- and 15-year lines are Freddie Mac average rates; the ARM lines are the APOR APR benchmark, because no free weekly ARM rate series exists.
- Now
- 7.18%
- Nov 5, 2026
- 1 week ago
- 7.24%
- −0.06 pts
- 1 month ago
- 7.40%
- −0.22 pts
- 1 year ago
- 6.22%
- +0.96 pts
30-year fixed: Freddie Mac PMMS (rate), weekly. National series.
What a mortgage costs in Kentucky
On a home at Kentucky's median list price of $300,000 with 20% down, the balance comes to $240,000, or about $1,626 a month in principal and interest at the 7.18% 30-year average.
What makes Kentucky different is the cost around the loan. Its 0.74% effective property-tax rate adds roughly $185 a month, and homeowners insurance — at the state's median 0.60% of home value — about $150 more, bringing the all-in estimate to $1,961. That figure is principal and interest at the 30-year average, property tax and insurance; at 20% down a conventional loan has no PMI, and HOA dues or local special assessments are not included. Your own price and down payment will move the number — work backward from your income with the what-you-can-afford calculator.
Payment at the $300,000 median list price by down payment and loan type
| Loan | Rate | Monthlyall-in | Mortgage ins. | Cash to close | Income needed28% rule · yearly |
|---|---|---|---|---|---|
| Conventional, 20% downNo PMI | 7.18%Freddie Mac 30-yr avg | $1,961P&I $1,626 | — | $62,475 | $84,000 |
| Conventional, 10% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $2,322P&I $1,829 | $158 | $32,475 | $99,000 |
| Conventional, 5% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $2,432P&I $1,931 | $166 | $17,475 | $104,000 |
| Conventional, 3% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $2,476P&I $1,971 | $170 | $11,475 | $106,000 |
| FHA, 3.5% down1.75% upfront MIP financed + annual MIP | 6.89%OBMMI FHA avg | $2,406P&I $1,938 | $133 | $12,975 | $103,000 |
| VA, 0% down2.15% funding fee financed; no monthly MI | 6.71%OBMMI VA avg | $2,314P&I $1,979 | — | $2,475 | $99,000 |
Monthly = principal and interest + property tax (0.74% effective) + homeowners insurance (about $150/mo — Kentucky's median premium, 0.60% of home value) + mortgage insurance. HOA dues and local special assessments are not included. Cash to close = down payment + Kentucky's average closing costs ($2,475). PMI is an illustrative 0.7% a year; FHA and VA figures use HUD's MIP schedule and VA's first-use funding fee. Income needed = the gross yearly income at which the monthly figure is 28% of pay, the classic housing-cost guideline. Lenders also limit your total monthly debts as a share of income, so car, student-loan and card payments raise the income you need.
Prices, loan limits and payments in Kentucky's biggest counties
Home prices, and so the loan you need, vary more inside Kentucky than rates do. The table covers the largest county markets. Pick a row to load it into the calculator above.
| County | Median list priceSep 2026 · yr/yr | Avg purchase loanHMDA 2025 | Conforming limitmax price at 20% down | At 20% down | Est. paymentP&I + tax + ins. | Calculator |
|---|---|---|---|---|---|---|
| Jefferson County2,317 homes for sale · Sep 2026 | $284,900-2.6% | $333,56310,659 loans | $832,750$1,040,937 | Conforming$227,920 loan | $1,862at 7.18% | |
| Fayette County730 homes for sale · Sep 2026 | $398,042+3% | $382,6003,308 loans | $832,750$1,040,937 | Conforming$318,434 loan | $2,602at 7.18% | |
| Warren County648 homes for sale · Sep 2026 | $339,9250% | $396,7821,672 loans | $832,750$1,040,937 | Conforming$271,940 loan | $2,222at 7.18% | |
| Hardin County452 homes for sale · Sep 2026 | $327,000+2.2% | $297,9721,521 loans | $832,750$1,040,937 | Conforming$261,600 loan | $2,137at 7.18% | |
| Kenton County377 homes for sale · Sep 2026 | $319,865+7.8% | $298,8822,566 loans | $832,750$1,040,937 | Conforming$255,892 loan | $2,091at 7.18% | |
| Madison County353 homes for sale · Sep 2026 | $350,200+7.8% | $305,7281,318 loans | $832,750$1,040,937 | Conforming$280,160 loan | $2,289at 7.18% | |
| Pulaski County341 homes for sale · Sep 2026 | $322,450+2.4% | $201,595655 loans | $832,750$1,040,937 | Conforming$257,960 loan | $2,108at 7.18% | |
| Boone County325 homes for sale · Sep 2026 | $409,975+5.6% | $324,2121,980 loans | $832,750$1,040,937 | Conforming$327,980 loan | $2,680at 7.18% | |
| Campbell County277 homes for sale · Sep 2026 | $324,998-2.4% | $284,8061,339 loans | $832,750$1,040,937 | Conforming$259,998 loan | $2,124at 7.18% | |
| Bullitt County272 homes for sale · Sep 2026 | $337,450-3.6% | $264,5631,305 loans | $832,750$1,040,937 | Conforming$269,960 loan | $2,206at 7.18% | |
| Daviess County261 homes for sale · Sep 2026 | $289,900-5.8% | $246,5851,205 loans | $832,750$1,040,937 | Conforming$231,920 loan | $1,895at 7.18% | |
| Christian County255 homes for sale · Sep 2026 | $247,450-1.9% | $229,304704 loans | $832,750$1,040,937 | Conforming$197,960 loan | $1,617at 7.18% |
Sources: Realtor.com county research data (median listing price, Sep 2026); FHFA 2026 one-unit conforming limits; 2025 HMDA home-purchase originations (average loan, all loan types). Payments use the 30-year average (7.18%, or the jumbo average 7.25% above the limit), Kentucky's 0.74% effective property tax and its median insurance premium (0.60% of value), both from Census ACS 2024 data; county tax rates differ. Max price at 20% down = the county limit ÷ 0.8, the highest price at which a 20%-down loan stays conforming. Homes for sale = active Realtor.com listings in the month, excluding pending sales.
What's different about buying a home in Kentucky
Rates are national, but the rules around the loan are not. These Kentucky specifics can change your payment, your closing or your protections as a borrower.
Property tax bill follows the January 1 owner
Kentucky assesses property as of January 1, and responsibility for that year's tax bill stays with the January 1 owner unless the sales contract expressly makes the buyer responsible. Buyers and sellers often agree to apportion the expected tax, so check how your contract handles it.
Source: revenue.ky.govHouse Bill 44 limits local tax revenue growth
House Bill 44 limits how fast most local property tax revenue can grow: the compensating rate rolls rates back as assessments rise, up to 4% more needs a public hearing, and going higher allows a voter recall petition. Your own bill still depends on your assessed value and the tax rates.
Source: revenue.ky.govFlood damage is excluded from most home policies
A Kentucky Division of Water fact sheet calls flooding the state's most frequent and costly natural disaster and says most homeowner policies do not cover flood damage. In high-risk areas, flood insurance is required with a mortgage from a federally regulated lender, and policies generally have a 30-day waiting period, so arrange it early.
Source: eec.ky.govInsurers must offer earthquake coverage on request
A standard Kentucky homeowners policy does not cover earthquake damage, but the Department of Insurance says all insurers writing homeowners coverage in the state must offer an earthquake endorsement if a consumer requests it. It costs an extra premium, so ask for a quote and the deductible before you close.
Source: insurance.ky.govFormer owners can redeem low-priced court sales
Kentucky law lets the defendant redeem real property sold under a court judgment or order, other than an execution, if the sale brought less than two-thirds of its appraised value. The deadline is six months from the day of sale, so buyers at such sales and borrowers facing one should know the right exists.
Source: apps.legislature.ky.govChecked against official sources on October 20, 2026. Laws and programs change; confirm details with the agency named or a local real estate attorney.
How Kentucky buyers finance their homes
USDA loans are where Kentucky stands out: they made up 1.3% of home loans originated here in 2025, against 0.6% nationally — the 8th-highest USDA share of any state. Lenders, agents and appraisers here handle USDA deals routinely, which helps if that is the loan you need.
| Loan type | Share in KY | U.S. share | Approval in KY | Avg loan in KY |
|---|---|---|---|---|
| Conventional | 76.2% | 78.0% | 74.4% | $227,161 |
| FHA | 14.5% | 13.2% | 78.1% | $245,912 |
| VA | 8.0% | 8.2% | 81.3% | $304,936 |
| USDA | 1.3% | 0.6% | 84.7% | $189,079 |
The average Kentucky home loan in 2025 was $235,608 — 33% below the U.S. average of $352,861, the 6th-smallest of 51 jurisdictions. Home purchases accounted for 63.4% of those loans (U.S. 64.2%); cash-out refinances for 16.1% (U.S. 17.1%).
Source: 2025 HMDA originations, FFIEC/CFPB. Approval = originated ÷ (originated + denied).
Kentucky loan limits for 2026
All 120 of Kentucky's counties use the 2026 baseline conforming limit of $832,750 for a one-unit home. Any loan above that is a jumbo loan here, which usually means a larger down payment and cash reserves. See the full national grid in our conforming vs. jumbo cutoffs.
County limits: FHFA 2026 conforming loan limit list (one-unit properties; two- to four-unit limits are higher).
Cash you'll need to close in Kentucky
Average closing costs in Kentucky are about $2,475 including transfer taxes (among the lowest in the country). On a home at the median list price of $300,000:
| 20% down | 3% down | |
|---|---|---|
| Down payment | $60,000 | $9,000 |
| Average closing costs | $2,475 | $2,475 |
| Cash to close (estimate) | $62,475 | $11,475 |
Prepaid taxes and insurance are extra. Closing-cost averages by state (source: Bankrate).
Transfer taxes and recording rules in Kentucky
Kentucky's real estate transfer tax is $0.50 per $500 of value (0.1%), imposed on the seller and collected by the county clerk as a condition of recording the deed (KRS 142.050). Source: apps.legislature.ky.gov
Getting approved in Kentucky
Federal HMDA lending records show Kentucky lenders originated 100,653 home loans in 2025 and denied 32,628 applications — an approval rate near 75.5% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our approval-rate rankings, and how Kentucky ranks for mortgage complaint analysis (2,800 on record).
Shopping for a loan? See the most active mortgage lenders in Kentucky, ranked by federal HMDA volume.
Down-payment help in Kentucky
You rarely need 20% down. These are the main programs from KHC, Kentucky's housing finance agency; they are offered through participating lenders, usually alongside the agency's own first mortgage.
Down Payment Assistance Program
Up to $12,500 for the down payment and closing costs, repaid at 4.75% over 15 years, available only with a Kentucky Housing Corporation first mortgage. KHC made the $12,500 level permanent.
Source: kyhousing.orgChecked against official sources on October 9, 2026. Assistance amounts, income limits and funding change during the year — confirm current terms with KHC or a participating lender.
Kentucky MCC: 25% of your mortgage interest back as a tax credit
Kentucky Housing's Homebuyer Tax Credit is 25% of mortgage interest, up to $2,000 a year. It can't be combined with KHC's bond (MRB) loans. How much an MCC saves you each year.
Check current terms at KHC, see how a smaller down payment changes your number with the down-payment need calculator, or compare all state assistance programs.
How these numbers are measured
- Freddie Mac PMMS (30- and 15-year): a weekly average of rates offered to borrowers with 20% down and strong credit, published Thursdays; latest week Nov 5, 2026. Points are not reported.
- Optimal Blue OBMMI (FHA, VA, USDA, jumbo): daily averages of rates actually locked, across credit profiles. Points vary by loan.
- APOR (APR benchmark): FFIEC/CFPB's weekly Average Prime Offer Rate, an APR that includes typical points and fees for a prime borrower. Regulators use it to flag higher-priced loans.
- HMDA 2025 (Kentucky vs U.S.): rates, costs, points and down payments on loans that actually closed, reported by lenders to federal regulators. Updated once a year.
- Census ACS 2024 (property tax and insurance): what homeowners with a mortgage in Kentucky reported paying — the median real-estate tax divided by the median home value, and the median insurance premium as a share of value. Updated once a year.
- Interest rate vs APR: the rate sets your payment; the APR adds points and lender fees spread over the loan. Compare APRs on Loan Estimates for the same day and loan type.
Rates and APOR refresh every week; HMDA, loan limits and closing-cost averages refresh when their publishers release new data. Reviewed by our standards team. Full sources and formulas: methodology notes.
Kentucky mortgage FAQ
What is a good mortgage rate in Kentucky right now?
A 30-year fixed close to the national average of 7.18% (Freddie Mac, week of Nov 5, 2026) is a fair benchmark for a borrower with strong credit and 20% down. In 2025, Kentucky's conventional buyers paid a median 6.63%.
Quotes well above that usually reflect lower credit, a small down payment or lender credits taken in exchange for a higher rate.
Are mortgage rates higher in Kentucky than in other states?
Slightly. In 2025 HMDA records, Kentucky's median conventional 30-year rate was 6.63%, against 6.50% nationally. Against the benchmark for each loan's lock week, which counts points and fees, Kentucky loans priced 0.05 percentage points above it (the 14th-highest of all 50 states and the District of Columbia), against 0.02 above nationally.
Rates are set mainly in one national market, so your credit, down payment and loan size matter more.
What are current jumbo mortgage rates in Kentucky?
The national jumbo 30-year average is 7.25% (Optimal Blue). In 2025, Kentucky's jumbo buyers paid a median 6.63%. A loan is jumbo above the $832,750 conforming limit, which applies in every Kentucky county.
Jumbo lenders typically want 10–20% down, a 700+ credit score and 6–12 months of reserves.
Should I choose a 15-year or 30-year mortgage?
On a $240,000 loan (20% down on Kentucky's median list price), a 30-year at 7.18% costs $1,626 a month and a 15-year at 6.57% costs $2,100.
The 15-year saves about $207,321 in interest but needs $474 more a month, so it fits only if that payment is comfortable.
How much does a 1% difference in mortgage rates change my monthly payment?
On a $240,000 loan (20% down on Kentucky's median list price), moving from 7.18% to 8.18% raises the principal-and-interest payment from $1,626 to $1,791, or $165 a month.
Over 30 years that is about $59,544 more in interest, which is why comparing several lenders on the same day matters.
Are mortgage rates different for purchase and refinance loans?
Yes, slightly. In 2025, Kentucky's conventional rate-and-term refinances closed at a median 6.38% and purchases at 6.63%, partly because refinances bunch up when rates dip. Refinances priced 0.02 percentage points below the market benchmark; cash-out refinances usually cost more. Your own pricing depends on credit, loan-to-value and points.
How much is a $400,000 mortgage at 7.18% interest?
About $2,710 a month in principal and interest over 30 years. In Kentucky, a $500,000 home with that loan adds roughly $308 a month in property tax at the 0.74% effective rate, plus homeowners insurance. Over 30 years the loan costs about $575,506 in interest.
How much income do I need to buy a home in Kentucky?
About $84,000 a year for a home at the $300,000 median list price with 20% down, if the full $1,961 monthly payment, including tax and insurance, stays within 28% of gross income.
Smaller down payments add mortgage insurance and raise that figure; existing debts lower what lenders approve.
What down payment assistance is available in Kentucky?
KHC, the state housing finance agency, runs Down Payment Assistance Program, offered through participating lenders. Help usually comes as a grant or a deferred or forgivable second loan paired with the agency's first mortgage.
Amounts, income limits and funding change during the year, so confirm current terms with KHC or a participating lender before you apply.
- Freddie Mac — Primary Mortgage Market Survey
- FFIEC / CFPB — Average Prime Offer Rates (APOR)
- FFIEC / CFPB — HMDA data browser (2025 loan-level records)
- Optimal Blue OBMMI via FRED (FHA, VA, USDA, jumbo)
- FHFA — 2026 conforming loan limits by county
- U.S. Census Bureau — 2024 American Community Survey microdata (property tax and homeowners insurance)
- HUD — Handbook 4000.1 (FHA mortgage insurance)
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.