Kentucky Mortgage Calculator
Calculate your Kentucky mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Louisville, Lexington, Bowling Green, Owensboro, Covington, and all of Kentucky.
Useful for home buyers in Louisville, Lexington, Bowling Green, Owensboro, Covington, and all of Kentucky.
Why use a Kentucky Mortgage Calculator?
Kentucky has affordable home prices and low property tax rates compared to most states. This calculator estimates your payment, PMI, property tax, and closing costs.
Kentucky has affordable home prices and low property tax rates compared to most states. This calculator estimates your payment, PMI, property tax, and closing costs.
Result
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Kentucky Property Tax: The average effective property tax rate is about 0.86%, which is lower than the national average. Kentucky offers homestead exemptions for homeowners age 65 or older. Closing costs in KY are typically 2-3% of the purchase price.
Average Home Prices in Major Kentucky Cities (2024)
| City | Detached | Semi-Detached | Townhouse | Condo |
|---|---|---|---|---|
| Louisville | $250,000 | $215,000 | $190,000 | $170,000 |
| Lexington | $280,000 | $240,000 | $210,000 | $185,000 |
| Bowling Green | $230,000 | $200,000 | $180,000 | $160,000 |
| Owensboro | $195,000 | $175,000 | $155,000 | $140,000 |
| Covington | $210,000 | $185,000 | $165,000 | $150,000 |
Note: Prices are approximate averages for 2024 and may vary by neighborhood and property features.
How Mortgage Rules Work in Kentucky
- Property Tax: Kentucky's average effective property tax rate is about 0.86%, which is lower than the national average. Property taxes are paid annually and may be included in your monthly payment.
- Homestead Exemption: Kentucky offers a homestead exemption that reduces the assessed value of the primary residence of homeowners age 65 or older or those who are totally disabled. For 2023-2024, the exemption amount is $46,350.
- Transfer Tax: Kentucky has a state transfer tax of $0.50 per $500 of property value (0.1%), which is typically paid by the seller.
- PMI (Private Mortgage Insurance): If your down payment is less than 20%, you must pay PMI, which is added to your monthly payment until you reach 20% equity.
- Closing Costs: Kentucky's closing costs include title insurance, recording fees, and other expenses, typically ranging from 2-3% of the purchase price.
Example: On a $230,000 home with 20% down in Louisville, you avoid PMI and benefit from Kentucky's relatively low property tax rate. Senior homeowners can further reduce their property tax burden through the homestead exemption. Closing costs are typically 2-3% of the purchase price.
Frequently Asked Questions
In Kentucky, property is assessed at its fair market value. The state tax rate is relatively low at just $0.123 per $100 of assessed value (0.123%), but local governments add their own taxes, bringing the average effective rate to about 0.86%. Property tax bills are typically sent out in the fall and are due by December 31.
Kentucky offers a homestead exemption that reduces the assessed value of the primary residence of homeowners who are at least 65 years old or who are classified as totally disabled. For 2023-2024, the exemption amount is $46,350 off the assessed value of the home. This exemption must be applied for through the local Property Valuation Administrator's office.
Closing costs in Kentucky are typically 2-3% of the purchase price and include title insurance, recording fees, loan origination fees, appraisal fees, and other expenses. Kentucky has relatively low closing costs compared to many other states, partly due to its low transfer tax rate of 0.1%.