Loan balance over time
| Total of 360 payments | $486,711 |
| Principal | $180,800 |
| Interest | $234,031 |
| Taxes | $48,150 |
| Insurance | $23,730 |
| HOA fees | $0 |
What these numbers come from
- Median home value
- $226,000
- Median tax bill
- $1,611
- Effective tax rate
- 0.71%
- Rank of 51
- 31st highest
Kentucky taxes property at about 0.71% of value against 0.89% nationally. On a $226,000 home that is $34 a month less than the same house would cost in taxes at the national rate. Rates are set by counties, cities and school districts, so your own bill will differ from the state median — put your actual figure in the property tax field and the payment updates.
Tax and home value figures: U.S. Census Bureau, American Community Survey 2024 1-year estimates. Insurance is estimated at 0.35% of home value per year — there is no comparable public per-state dataset, so treat it as a placeholder and replace it with your own quote. The interest rate is the national Freddie Mac 30-year average of 6.58%; this site does not publish state-level rate quotes.
Monthly cost across Kentucky home prices
20% down, 30-year fixed at 6.58%, with Kentucky property tax of 0.71% and estimated insurance.
| Home price | Loan | P&I | Tax/mo | Full payment |
|---|---|---|---|---|
| $136,000 | $108,800 | $693 | $80 | $814 |
| $181,000 | $144,800 | $923 | $107 | $1,083 |
| $226,000 median | $180,800 | $1,152 | $134 | $1,352 |
| $283,000 | $226,400 | $1,443 | $167 | $1,693 |
| $339,000 | $271,200 | $1,728 | $201 | $2,028 |
The gap between the P&I column and the last one is what a mortgage quote leaves out. In Kentucky taxes alone add $134 a month on a median-priced home.
Amortization schedule
| Date | Principal | Interest | Tax, Ins. & HOA | Balance |
|---|---|---|---|---|
| Aug | $161 | $991 | $200 | $180,639 |
| Sep | $162 | $991 | $200 | $180,477 |
| Oct | $163 | $990 | $200 | $180,315 |
| Nov | $164 | $989 | $200 | $180,151 |
| Dec | $164 | $988 | $200 | $179,987 |
| 2026 | $813 | $4,948 | $998 | $179,987 |
| Jan | $165 | $987 | $200 | $179,821 |
| Feb | $166 | $986 | $200 | $179,655 |
| Mar | $167 | $985 | $200 | $179,488 |
| Apr | $168 | $984 | $200 | $179,320 |
| May | $169 | $983 | $200 | $179,150 |
| Jun | $170 | $982 | $200 | $178,981 |
Refinancing in Kentucky
The arithmetic is the same everywhere: refinancing pays off when the monthly saving clears the closing costs before you sell or refinance again. What differs by state is the cost of getting there — recording fees, transfer and mortgage taxes, and whether an existing tax assessment survives the new loan.
Work the break-even with the refinance calculator, or check this week’s national average rates.
Kentucky home loans in detail
Kentucky Mortgage Overview
Known for the Kentucky Derby and all things horse racing, Kentucky is known as the 'Bluegrass State.' The scenery is gorgeous and there are homes for all price ranges, but Kentucky is a great place for first-time homebuyers because the median home price is around $275,000 — well below the national average.
If you're thinking about moving to Kentucky, here are your mortgage options:
Kentucky FHA loans
FHA loans offer flexible underwriting guidelines for first-time and subsequent homebuyers. Borrowers need just a 580 credit score and a 45 percent debt ratio. With just 3.5 percent down, you can buy a home, but you'll have mortgage insurance for the life of the loan, so include it in your budget.
Kentucky VA loans
Veterans of the military or even current military members have access to 100% financing if they have at least a 620 credit score. VA loans have the most flexible guidelines and VA lenders focus mostly on a borrower's disposable income to make sure you can cover the cost of daily living. VA loans don't require mortgage insurance but do have an upfront funding fee.
Kentucky USDA loans
Borrowers who love the wide open or living in areas of lower population may be eligible for a Kentucky USDA loan. Your household income must be less than 115% of the area's median income to be eligible and you must buy an owner-occupied home. USDA loans don't require a down payment but do have mortgage insurance for the life of the loan.
Kentucky conventional loans
Borrowers with great credit and low debt ratios get the best interest rates and terms with conventional loans. You need just 3 percent down, but with less than a 20 percent down payment, you'll pay Private Mortgage Insurance until you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Kentucky
Down Payment Assistance
Receive down payment assistance up to $6,000 that's repayable over 10 years at 1 percent interest. To qualify, you must meet the income limits.
Borrowers with at least a 660 credit score may qualify for the Conventional Preferred program which requires a 3 percent down payment, allows down payment assistance and doesn't require borrower contribution.
Borrowers with a 620 credit score may qualify for the FHA program through the Kentucky Housing Corporation. You'll need a 3.5 percent down payment but can use down payment assistance for it.
Veterans with at least a 620 credit score can use the VA program with no down payment requirements. You can use the DAP funds for closing costs or to earn some equity in the home right away.
Tax credit
First-time homebuyers may be eligible for a tax credit equal to 25 percent of the interest paid for the year, up to $2,000 but only if you buy a home that's worth $294,600 or less.
Kentucky mortgage FAQ
- How much is property tax on a home in Kentucky?
- Kentucky homeowners pay an effective property tax rate of about 0.71 percent of home value — the 31st highest of the 50 states and DC. On the state's median home value of $226,000 that works out to roughly $1,605 a year, or $134 a month added to the mortgage payment. The figures come from the Census Bureau's American Community Survey 2024 1-year estimates; your own bill depends on the county and city rates where the home sits.
- What is the monthly payment on a median-priced Kentucky home?
- At $226,000 with 20 percent down and the current 6.58 percent national 30-year fixed average, principal and interest come to about $1,152 a month. Adding Kentucky property tax of roughly $134 a month and an estimated $66 of homeowner insurance brings the full payment to around $1,352.
- What loan options do Kentucky homebuyers have?
- Kentucky buyers can use FHA loans with a 580 credit score, a 45 percent debt ratio, and 3.5 percent down, VA loans with 100 percent financing and a 620 score for military borrowers, USDA loans with no down payment for households earning under 115 percent of area median income, and conventional loans with 3 percent down and PMI until you owe less than 80 percent of the home value.
- What first-time homebuyer help is available in Kentucky?
- Kentucky offers down payment assistance repayable over 10 years at 1 percent interest for buyers within income limits. Through the Kentucky Housing Corporation, the Conventional Preferred program serves 660 plus credit scores with 3 percent down, while FHA and VA options work with 620 scores. First-time buyers may also claim a tax credit worth 25 percent of the yearly mortgage interest.
- What credit score is required to buy a house in Kentucky?
- It depends on the program. FHA loans accept a 580 credit score with 3.5 percent down, VA loans and the Kentucky Housing Corporation FHA program both work with a 620 score, and the Conventional Preferred program requires at least 660. Conventional loans in general reward strong credit and low debt ratios with the best interest rates and terms.
Property tax in every state
Effective rate on owner-occupied value, highest bills first in each column.
- Alabama0.38%
- Alaska1.06%
- Arizona0.43%
- Arkansas0.52%
- California0.71%
- Colorado0.49%
- Connecticut1.66%
- Delaware0.47%
- District of Columbia0.63%
- Florida0.75%
- Georgia0.74%
- Hawaii0.27%
- Idaho0.43%
- Illinois1.92%
- Indiana0.74%
- Iowa1.29%
- Kansas1.25%
- Louisiana0.53%
- Maine0.91%
- Maryland0.95%
- Massachusetts1.00%
- Michigan1.18%
- Minnesota1.02%
- Mississippi0.65%
- Missouri0.79%
- Montana0.69%
- Nebraska1.42%
- Nevada0.47%
- New Hampshire1.46%
- New Jersey1.89%
- New Mexico0.63%
- New York1.45%
- North Carolina0.61%
- North Dakota0.96%
- Ohio1.22%
- Oklahoma0.75%
- Oregon0.78%
- Pennsylvania1.16%
- Rhode Island1.07%
- South Carolina0.45%
- South Dakota1.02%
- Tennessee0.45%
- Texas1.31%
- Utah0.49%
- Vermont1.42%
- Virginia0.71%
- Washington0.79%
- West Virginia0.52%
- Wisconsin1.25%
- Wyoming0.57%