Current Kentucky Mortgage and Refinance Rates

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Current 30-year fixed mortgage rates are averaging: 7.52%

Current 15-year fixed mortgage rates are averaging: 6.83%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

Compare KY mortgage rates today

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Refinance rates in Kentucky

  • Rate-and-term refinances help homeowners replace a current mortgage that doesn’t suit them with one that has better terms. Lengthening your loan term or lowering your interest rate usually reduces your monthly mortgage payment. In Kentucky today, refinance rates are slightly higher than purchase mortgage rates.
  • Cash-out refinances offer a way to refi while also borrowing a lump sum in cash that will be secured by your home equity. They usually have higher interest rates than regular refinances.
  • Conventional refinances aren’t a part of a government loan program. You can expect them to come with higher rates than government-backed refinances.
  • FHA refinances are insured by the Federal Housing Administration (FHA), which allows them to offer easier qualification guidelines than conventional loans. FHA loan rates are also usually lower than conventional refinance rates, and in Kentucky, they may be around 0.63 percentage points lower.
  • VA refinances are backed by the U.S. Department of Veterans Affairs (VA) and also carry flexible requirements and low VA rates. However, you must be a qualified military borrower to take advantage of these loans.

Current 30-year fixed mortgage refinance rates are averaging: 7.76%

The current average rate for a 15-year fixed mortgage refinance is: 6.99%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
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.

How do I get the best mortgage rate for my Kentucky home loan?

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:

  1. Boost your credit. Your credit score is a very weighty factor influencing the mortgage rate quotes lenders offer you. A higher score will help you access better rates.
  2. Lower your debt-to-income (DTI) ratio. Your DTI ratio also helps lenders evaluate what rates they can offer you. If your DTI reflects a heavy debt load, you may want to lower it by increasing your income, paying off some debts or getting a mortgage cosigner.
  3. Buy a single-family, site-built home. You’ll get lower interest rates if you avoid buying a manufactured home, multiunit property, vacation home or investment property.
  4. Pay for mortgage points. Mortgage points give you a chance to “buy down” your interest rate. For a fee — typically 1% of your loan amount — you can reduce your rate by up to 0.25 percentage points for each point you buy. If you can afford this extra fee, reducing your interest rate can make your payments more affordable going forward.
  5. Compare offers from multiple lenders. Gather loan estimates from three to five lenders so that you can compare offers and choose the best rate. This simple step can save you thousands — or even tens of thousands — over the life of your loan, according to LendingTree data.

 Read more about our picks for the best mortgage lenders.

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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.

2024 Kentucky home loan programs

KHC Mortgage Revenue Bonds Program

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

KHC ​​​​​Secondary Market Funding Source

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

KHC Regular Down Payment Assistance Program

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.

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Learn about different types of KY mortgage loans

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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