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Mortgage rates in Kentucky

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.125%

If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.250% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Kentucky home will depend on several factors, including your credit score, loan amount and lender.

Rates were last checked on October 6 and are from the Consumer Financial Protection Bureau (CFPB) website.

Your credit score affects the rate you’ll get

People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Kentucky by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).

Credit score $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
620-639 3.875% 3.938% 3.750% 3.750%
640-659 3.750% 3.750% 3.625% 3.625%
660-679 3.500% 3.500% 3.500% 3.500%
680-699 3.250% 3.250% 3.250% 3.250%
700-719 3.250% 3.250% 3.125% 3.125%
720-739 3.125% 3.125% 3.125% 3.125%
740-759 3.125% 3.125% 3.000% 3.000%
760-779 3.125% 3.125% 3.000% 3.000%
780-799 3.125% 3.125% 3.000% 3.000%
800+ 3.125% 3.125% 3.000% 3.000%

*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage

Interest rates vary by lender

Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.

Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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Compare up to 4 providers

Interest rates also vary by loan type

The type of loan you get can also affect how much you pay for your Kentucky home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.

Loan type $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
15-year conventional 2.500% 2.500% 2.375% 2.375%
30-year conventional 3.250% 3.250% 3.125% 3.125%
15-year FHA 2.625% 2.375% Not eligible Not eligible
30-year FHA 3.000% 3.000% Not eligible Not eligible
15-year VA 2.875% 2.625% 2.500% 2.563%
30-year VA 3.250% 3.125% 3.125% 3.125%

*Based on a 10% down payment, fixed interest rate and 710 credit score

Research ahead of time to get the best rates

Build a strong credit profile and do your research to make sure you get the best rate possible.

  1. Compare loan products. There are many different types of home loans for borrowers to choose from in Kentucky. Shop around and make sure you fully understand each option available to you to select the loan that best fits your borrowing needs.
  2. Become a credit superstar. Lenders love when borrowers have strong credit profiles. Take a few months or more to pay down any debt you might have. This can decrease your debt-to-income ratio and increase your credit score.
  3. Don’t forget to weigh the closing costs. Closing costs in Kentucky are about 0.83% and 1.24% of the home price. Include these numbers when comparing lenders and the total cost of the mortgage.

Home values in Kentucky are forecast to increase

With home values skyrocketing across the nation, it’s no surprise that Kentucky’s values are also expected to grow into 2022. But according to Zillow, the growth will be more conservative than in many other states.

Two cities are forecast to see top increases of slightly more than 10% — Richmond and Louisville-Jefferson County. But Elizabethtown and Lexington are close behind at 9.6%. London is expected to see the most conservative gain of 4.4%.

5 fast facts about the Kentucky housing market

Kentucky’s growth isn’t all to consider before you make a move. Keep in mind the following as you start your property search:

  1. Kentucky has a low cost of living, and its housing is a large reason why with a median cost of around $80,000 less than the national average.
  2. Kentucky’s property tax rate ranks 29th in the nation at .86%.
  3. This state allows dual agency, meaning the buyer and seller can have the same real estate agent.
  4. While not technically part of Tornado Alley, Kentucky averages 21 tornadoes per year. This means you’ll want to add tornado coverage to your homeowners policy.
  5. The Kentucky Housing Corporation has several programs to help homebuyers with down payment assistance, loan programs and homebuyer tax credits.

Bottom line

Mortgage rates in Kentucky vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.

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