Mortgage Calculator in Kentucky

Calculate your monthly mortgage payment in Kentucky using the 2026 median home price of $263K and current local rates. Adjust the inputs below. Formula shown, sources cited — no account required.

Bluegrass country offers genuine housing value, with a median home price of $263,000 sitting comfortably below both national and regional averages. Property taxes are among the lowest in the country at 0.86%, which on the median home translates to roughly $2,262 per year — about $189 per month added to housing costs. Closing costs average 1.5%, or about $3,945 on the median purchase. First-time buyers can access the KHC Regular DPA and KHC Affordable DPA programs through the Kentucky Housing Corporation, both of which offer down-payment assistance paired with competitive mortgage rates for qualifying buyers. A 10% down payment means bringing $26,300 to closing. The market moves at a measured pace in most of the state, giving buyers adequate time to make deliberate decisions rather than rushing under bidding pressure. Louisville and Lexington carry more competition, while smaller cities and rural communities offer strong value with even lower price points. Use the mortgage calculator above to enter the property tax rate and see how it affects your monthly payment relative to states with higher rates.

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Kentucky's average mortgage rate of 6.51% and median home price of $263K produce a monthly P&I of approximately $1,498 before taxes and insurance.

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Kentucky Housing Market at a Glance (2026)

$263K

Median Home Price

6.51%

Avg Mortgage Rate

0.86%

Property Tax Rate

10%

Typical Down Payment

Buying a Home in Kentucky: Costs to Know

Average closing costs1.5% of purchase price

On a $263K home, closing costs â‰ˆ$3,945

Median household income$64,526/yr

State income tax (top rate)3.5%

First-Time Buyer Programs in Kentucky

Kentucky offers state-sponsored programs that can reduce your down payment or closing costs:

✓KHC Regular DPA
✓KHC Affordable DPA

How Mortgage Payments Work in Kentucky

A standard mortgage payment in Kentucky is calculated using the amortization formula:M = P[r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. On a $263K home in Kentucky with a 10% down payment at 6.51% over 30 years, your principal and interest payment comes to approximately $1,498/month— not including property taxes or homeowner's insurance.

Kentucky's property tax rate of 0.86% adds roughly $188/month to your total housing cost on a $263K home. This rate is near the national average of ~1.1%.

Kentucky vs. National Average

Metric	Kentucky	National Avg
Median Home Price	$263,000	$420,000
Property Tax Rate	0.86%	1.07%
Avg Mortgage Rate	6.51%	6.85%
Cost of Living Index	91.5	100

Questions You Might Ask — Mortgage Calculator in Kentucky

What is the average mortgage payment in Kentucky?

Based on the median home price of $263K in Kentucky with a 10% down payment and 6.51% rate (30-year fixed), the estimated monthly principal and interest payment is approximately $1,498. Adding property taxes (~$188/mo) and homeowner's insurance, total PITI is typically $1,836–$1,936/month.

What is the property tax rate in Kentucky?

Kentucky has an average effective property tax rate of 0.86%. On the median home price of $263K, that equals roughly $2,262 per year — or $188 added to your monthly mortgage payment. This is near the national average of ~1.1%.

How much down payment do I need to buy a home in Kentucky?

The typical down payment in Kentucky is 10% — about $26,300 on the median $263K home. Conventional loans require as little as 3% down; FHA loans allow 3.5%. First-time buyers may also qualify for assistance through programs like KHC Regular DPA.

What are closing costs in Kentucky?

Average closing costs in Kentucky are approximately 1.5% of the purchase price — about $3,945 on the median $263K home. Closing costs include lender origination fees, title insurance, escrow, prepaid interest, and government recording fees.

What income do I need to afford the median home in Kentucky?

To afford the $263K median home in Kentucky under the 28% housing-cost rule, you need a gross monthly income of at least $6,557 — roughly $79K/year. The median household income in Kentucky is $64,526.

Data Sources & Methodology

State data sourced from the National Association of Realtors (median home prices), Tax Foundation (property tax rates, income tax), Freddie Mac PMMS (mortgage rates), ATTOM Data Solutions (closing costs), and U.S. Census Bureau ACS (household income). Last updated 2026.