Kentucky Mortgage Rates

May 26, 2015 03:33 AM Eastern

Refinance rates now in LOUISVILLE, KY [Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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If you want to buy or refinance your "old Kentucky home," you've come to the right place. LendingTree lenders are ready to provide mortgage quotes and help you save money.  In Kentucky the Department of Financial Institutions regulates mortgage lenders.

Kentucky Mortgage Rates

Rates vary from state to state based on the economy of each, their different lending laws and the degree of competition among lenders who are offering rates that can attract potential borrowers in that area.

Here is a sampling of current Kentucky mortgage rates:

Buying a Home in Kentucky

In some states investing in the housing market is like putting your money on the wrong horse in the Kentucky Derby -- but not so in Kentucky. Housing prices have held up through the long stretch of the economic downturn. Home prices in Kentucky fell only two percent from their peak in the first quarter of 2009 through 2012. They are forecast to rise another one-to-two percent during the next twelve months.

Houses are generally affordable -- in Kentucky counties, between 79 and 87 percent of homes are affordable to those earning the median household income.

When you are calculating how much money you need to buy the house, do not forget to include closing costs, which in Kentucky are reasonable—only $2,381 for a $200,000 mortgage. Kentucky ranks 28th for all states and the District of Columbia.

For additional assistance buying a home in Kentucky, there are numerous state and local programs, some of which are included in the list below:

FHA Mortgages

Many LendingTree mortgage lenders offer FHA home loans with down payments as low as 3.5 percent.  While FHA limits loan amounts in most Kentucky counties to $271,050, some of the counties bordering Cincinnati, Ohio—Boone, Bracken, Campbell, Gallatin and Grant—allow FHA borrowing limits up to $337,500. And the limit for Bullitt County in the Louisville metropolitan area is $302,500.

VA Home Loans

The VA does not limit mortgage amounts under its program. However, most lenders do. In all Kentucky counties, most lenders cap 100 percent VA loans at $417,000.