What’s the average mortgage payment in Kentucky?

According to data collected from Redfin and Rocket Mortgage, the average monthly mortgage payment in Kentucky is around $1,614 before property taxes and insurance. Compared to many other states, Kentucky remains relatively affordable, thanks to lower-than-average home prices and steady housing supply.

Kentucky’s housing market is shaped by a mix of urban growth in metro areas like Louisville and Lexington, alongside more affordable options across much of the state’s rural counties.

Overview of the Kentucky housing market

The median sale price of a home in Kentucky is roughly $278,400, according to Redfin’s statewide housing data. While prices vary widely by region, the state has seen moderate price growth, balanced inventory levels, and continued buyer demand in major employment hubs.

Here’s a snapshot of recent median sale prices from Redfin across several Kentucky cities:

Factors that influence mortgage payments in Kentucky

Your monthly payment includes principal, interest, taxes, and insurance (PITI). Tools like the Rocket Mortgage® mortgage calculator can help you see how different variables affect your payment.

Home price and down payment

Because Kentucky’s median home price is well below the national median, buyers typically benefit from lower loan balances and more manageable monthly payments. For example, on a $278,400 home with a 20% down payment and a 6.5% interest rate, the estimated monthly principal and interest payment is around $1,408.

A down payment below 20% may require private mortgage insurance (PMI), which can add over $140 per month, depending on credit score and loan type.

Mortgage rate

• Your Kentucky mortgage rate depends on several factors, including:
• Credit score and credit history
• Debt-to-income ratio (DTI)
• Loan type
• Down payment amount
• Home type and location
• Current market conditions

Loan term

Loan length also influences your monthly payment. Most home buyers choose a 30-year or 15-year mortgage. A 30-year loan spreads payments out over time and keeps monthly costs lower, while a 15-year loan comes with higher monthly payments but significantly less total interest paid.

Property taxes and insurance

Kentucky’s average effective property tax rate is approximately 0.77%, which is lower than the national average. On a median-priced home, property taxes typically add about $180 per month.

How do mortgage payments in Kentucky compare to others in the region?

Mortgage rates are fairly consistent nationwide, but differences in home prices drive variations in monthly payments.

Here’s how Kentucky compares with nearby states:

Kentucky remains one of the more affordable states in the region for home buyers.

Counties with the highest mortgage payments in Kentucky

Mortgage payments tend to be highest in counties near major metro areas, where demand and home prices are strongest. The counties below have the highest estimated monthly mortgage payments based on Q1 2025 median sale prices from the National Association of REALTORS^®:

Counties with the lowest mortgage payments in Kentucky

Rural and Appalachian counties tend to have the lowest housing costs in the state, resulting in much lower monthly mortgage payments.

How to calculate your mortgage payment

Lenders use a standard formula that factors in the loan amount, interest rate, and loan term.

A simple online mortgage calculator that lets you adjust these variables and see how your monthly payment changes. Additional tools allow you to explore refinancing options, PMI estimates, and affordability scenarios.

Kentucky-specific mortgage resources

Kentucky offers several programs designed to improve affordability and support homebuyers:

• Kentucky Housing Corporation (KHC): Offers down payment assistance, competitive interest rates, and programs for first-time buyers.
• USDA Rural Development Loans: Many areas of Kentucky qualify for USDA loans, which offer 0% down payment options.

Average mortgage payment in Kentucky FAQ

Where can I find the lowest average mortgage payments in Kentucky?

Breathitt County in eastern Kentucky has the lowest average mortgage payments in the state, with an average of $410 per month.

Which county has the highest average mortgage payments in Kentucky?

Oldham County has the highest estimated monthly mortgage payment in Kentucky, at about $2,600.

How much do you need to make to afford a home in Kentucky?

Many lenders follow the 28/36 rule, meaning housing costs should not exceed 28% of gross monthly income. With Kentucky’s average mortgage payment of $1,614, a household may aim to earn around $5,800 per month, or roughly $70,000 per year, depending on other debts.

The bottom line: Multiple factors shape your mortgage payment in Kentucky

Kentucky’s relatively low home prices keep mortgage payments more affordable than in many states, though costs vary widely by county. Understanding local market trends, interest rates, and available assistance programs can help buyers make informed decisions.

Whether you’re a first-time buyer or an experienced homeowner, get prequalified for a loan with Rocket Mortgage to understand your buying power and begin the process with confidence.

*Methodology: Average monthly mortgage payment in a region, calculated based on average home purchase price for a fixed 30-year loan and a 52-week average interest rate of 6.68% from Freddie Mac as of August 2025.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.