What is the average mortgage rate in Kentucky in 2026?
Around 7.46% as of October 19, 2026, in line with national average.
Best Mortgage Rates Kentucky 2026
Kentucky offers affordable housing with a median home price of $270,500 in early 2026. The state reduced its income tax rate to a flat 3.5% effective January 1, 2026.
30-year fixed
7.46%
National avg
15-year fixed
6.82%
National avg
5/1 ARM
6.82%
National avg
| Product | Rate (APR) |
|---|---|
| 30-year fixed (national avg) | 7.46% |
| 15-year fixed (national avg) | 6.82% |
| 5/1 ARM (national avg) | 6.82% |
Rates verified Oct 21, 2026
Rates shown are national benchmark averages from the site data file, not live quotes from lenders. Confirm pricing with banks and brokers in Kentucky. Not financial advice.
Kentucky at a glance
- Average home price: $270,500
- State income tax: Yes (3.5% flat rate as of 2026)
- Land transfer tax: Yes ($0.50 per $500, approximately 0.10%)
- Typical monthly payment: $1,507/mo on $270,500 with 20% down, 30-year term, at 7.46% — excludes taxes, insurance, and HOA.
Frequently Asked Questions
Does Kentucky have a real estate transfer tax?
Yes — $0.50 per $500 of sale price, approximately 0.10% — one of the lowest in the US.
What is the median home price in Kentucky in 2026?
$270,500 as of February 2026 — below the national median.
How much do I need to earn to afford a home in Kentucky?
To afford $270,500 with 20% down at 7.46%, you need approximately $65,000–$65,000 annual income.
Kentucky mortgage calculator · Educational reference only. Not financial or lending advice.