What are average mortgage rates in Kentucky in 2026?

Mortgage rates in Kentucky generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Kentucky mortgage calculator to model your payment at current rates.

How much are closing costs in Kentucky?

Closing costs in Kentucky typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Kentucky mortgage calculator to include closing costs in your calculation.

What are property tax rates in Kentucky?

Property tax rates in Kentucky range from 0.3% to 2.5% of assessed value. CalcDeck's Kentucky calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Kentucky?

Kentucky offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Kentucky calculator to see how programs affect your payment.

How do I use the CalcDeck Kentucky mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Kentucky averages. Get instant monthly payment, total interest, and amortization schedule.

Kentucky Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Kentucky homeowners.

Kentucky at a Glance

Median Home Price: $214,000
Property Tax Rate: 0.77%
Median Household Income: $59,093
Annual Property Tax: $1,648

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Kentucky

Based on the Kentucky median home price of $214,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$171,200	$203,300
Principal and Interest	$1,105	$1,312
Property Tax (KY)	$137	$137
Homeowners Insurance	$125	$125
PMI	$0	$85
Total Monthly	$1,367	$1,659

How Much House Can You Afford in Kentucky?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$58,587/year to afford Kentucky's median home
With 5% down, you need ~$71,095/year
Kentucky's median household income is $59,093

Kentucky insight: Kentucky's property tax rate of 0.77% is near the national average.

Kentucky Housing Market Overview

Kentucky's housing market offers excellent affordability, with a median home price of $214,000 and a median household income of $59,093, yielding a price-to-income ratio of 3.6. Louisville's median sits at $245,000, Lexington $265,000, and smaller cities like Bowling Green and Owensboro both around $200,000. Inventory is moderate at 3.1 months, giving buyers some leverage. The effective property tax rate of 0.77% is below the national average, costing about $1,648/year on a median home. Kentucky has seen corporate investment from Amazon, Ford (BlueOval SK battery plant), and UPS, driving growth in central Kentucky. Distillery tourism and bourbon industry expansion have boosted property values in Bardstown and Frankfort.

First-Time Homebuyer Programs in Kentucky

The Kentucky Housing Corporation (KHC) offers the Regular Down Payment Assistance Program, providing up to $10,000 as a repayable second mortgage at 1% interest over 10 years. KHC also offers the Home Buyer Tax Credit (MCC), providing a 25% federal tax credit on mortgage interest (capped at $2,000/year)—one of the highest MCC rates in the nation. The Affordable Housing Trust Fund provides grants up to $5,000 for eligible buyers in rural counties. Louisville's Down Payment Assistance Program offers up to $10,000 in forgivable grants for households earning below 80% of area median income. Income limits for KHC programs: Jefferson County caps at $68,000 for a two-person household; rural counties cap at $60,000.

Tips for Homebuyers in Kentucky

1) Kentucky's 0.77% property tax is very reasonable—only ~$137/month on a median home. 2) Heavy clay soil causes foundation issues statewide; include a structural inspection in your offer ($400–$600). 3) The Lexington/Louisville I-64 corridor is booming; homes in Georgetown and Shelbyville sell fast due to Toyota and Amazon expansion. 4) Buy in late fall (October–December) for less competition and better negotiating position. 5) Termites are prevalent—get a WDI inspection and verify treatment history. 6) Kentucky has no earthquake building codes in most counties; if buying near the New Madrid fault zone (western KY), check foundation anchoring and consider earthquake insurance.

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Kentucky Mortgage FAQ

What is the median home price in Kentucky?

The median home price in Kentucky is approximately $214,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Kentucky?

The effective property tax rate in Kentucky is approximately 0.77% (Tax Foundation). On a $214,000 home, that is about $1,648/year in property taxes.

How much income do I need to buy a home in Kentucky?

Using the 28/36 rule with 20% down at 6.7%, you would need about $58,587/year to afford the median Kentucky home at $214,000. With 5% down (including PMI), about $71,095.

What will my monthly mortgage payment be in Kentucky?

On Kentucky's median home price of $214,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $1,367. With 5% down including PMI, about $1,659.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.