Refinance rates in KentuckyCurrent 30-year fixed mortgage refinance rates are averaging: 7.38%
The current average rate for a 15-year fixed mortgage refinance is: 7.02%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?The current mortgage interest rates forecast predicts that rates will hover between 6% and 7% for most of the year. However, LendingTree senior economist Jacob Channel does leave open the possibility that rates could move closer to (or even drop below) that 6% barrier by the end of the year. The Federal Reserve could help push rates down by cutting the federal funds rate, but we aren’t likely to see such a move until later in the year.
While there are many factors determining mortgage rates that are out of your control, it’s very possible to influence the rates you’re offered. Here are a few steps you can take right now to get the best mortgage rate:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?Once you’re ready to move forward with a specific home and lender, you should talk to your loan officer about a mortgage rate lock. Locking your rate means you’ll have a designated period of time in which to close on your loan — without having to worry about your rate changing. If your rate isn’t locked, it could increase before you make it to closing.
This is the Kentucky Housing Corporation’s (KHC) program for first-time homebuyers and buying in targeted areas. If you’ve been discouraged by high mortgage interest rates, this loan program could ease some of the strain. It offers 30-year home loans with below-market interest rates.
Who qualifies?Borrowers must:
Be a first-time homebuyer or purchasing in a targeted area (repeat homebuyers may only purchase in targeted areas)
Purchase a home for no more than $481,176
Earn within the program’s income limits ($94,320 to $141,540 for purchases inside targeted areas, and $78,600 to $116,265 for purchases outside targeted areas — dependent on household size)
Use an FHA, VA or USDA loan
Have a 620 minimum credit score
Who qualifies as a first-time homebuyer? People who have never owned a home
People who haven’t owned real estate in the last three years
This KHC program also offers 30-year loans at low interest rates, but it’s open to both first-time and repeat buyers purchasing in any part of the state. And if your income is too high to qualify for the Mortgage Revenue Bond program covered above, this program comes with more generous income limits.
Who qualifies?Borrowers must:
Purchase a home for no more than $481,176
Meet the program’s income limits, which range from $137,550 to $181,300 depending on which county the home is located in
Use a conventional, FHA, VA or USDA loan
Have a 620 minimum credit score
Homebuyers who are purchasing with a KHC loan can qualify for this down payment assistance program, which offers up to $10,000 in funds through a second mortgage loan. The assistance funds do have to be repaid within 10 years, but come with a low 3.75% interest rate.
Who qualifies?Borrowers must:
Use the program in conjunction with a KHC first mortgage loan
Get the full details about each program at Kentucky Housing Corporation’s website.
→ Kentucky conventional loans. A conventional loan is a standard choice for borrowers with strong credit. These loans typically share minimum requirements set by Fannie Mae and Freddie Mac.
→ Kentucky FHA loans. FHA loan requirements aren’t quite as stringent, especially when it comes to credit score. You can qualify with a score as low as 500 if you make a 10% down payment. And if your down payment fund isn’t quite that large, you can put down as little as 3.5% — though you will need at least a 580 score.
→ Kentucky VA loans. VA loan requirements give even more flexibility, but only borrowers with the right military history can qualify. Service members and veterans with full VA entitlement can purchase or refinance without making a down payment or paying for mortgage insurance.
→ Kentucky streamline refinances are for homeowners looking to refinance certain government-backed loans. If you want to refinance from an FHA loan into a new FHA loan, you can use a FHA streamline refinance loan. If you have a VA loan, you can refinance into a new VA loan using a VA interest rate reduction refinance loan (IRRRL). These loans require less paperwork and time than typical refinance types, which is why they’re called “streamline.”
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