Current Mortgage Refinance Rates in Kentucky (December 2024)

Kentucky's current mortgage refinance rates are 5.94% for a 15-year fixed loan and 6.74% for a 30-year fixed loan, lower than the national averages of 6.12% and 7.08%, respectively.

This guide provides an overview of mortgage refinancing in Kentucky, including rates by credit score, trends and tips on when to refinance. Use this information to make confident refinancing decisions.

MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Kentucky. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).

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This data was last updated in December 2024.

Current Mortgage Refinance Rates in Kentucky

The current 30-year refinance rate in Kentucky is 6.74%. The state's average mortgage debt was $150,430 as of September 2023, according to Experian.

If your current mortgage rate exceeds 6.74%, refinancing may help lower monthly payments and reduce total interest costs over the loan's term. Below are Kentucky's latest refinance rates to help you evaluate your options.

15-Year Fixed5.81%5.94%
30-Year Fixed6.66%6.74%

Mortgage Refinance Rate Trends in Kentucky

In December 2024, the 15-year refinance rate and 30-year fixed rate in Kentucky saw slight declines compared to the previous month.

Kentucky Mortgage Refinance Rate Trends 2024

Data from 2024

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WHY DO INTEREST RATES GO UP?

Interest rates rise due to factors like the Federal Reserve's monetary policy and economic conditions such as inflation. These also impact refinance rate trends in Kentucky. Staying informed helps you see how national policies shape local financial conditions.

How to Refinance a Mortgage in Kentucky

Refinancing your mortgage in Kentucky can lower monthly payments or adjust loan terms. Knowing the steps is essential, whether you're seeking a better rate or a shorter loan term. Here's how to make refinancing work for you.

  1. 1

    Check Your Credit Score

    Credit scores influence the rates you qualify for. If your score is below Kentucky's average of 705, consider paying down debt or disputing errors to improve your score and potentially secure better rates.

  2. 2

    Determine When to Refinance a Mortgage

    Compare your current mortgage terms to market rates. In Kentucky, current refinance rates are 6.74% for a 30-year fixed loan and 5.94% for a 15-year fixed loan. If these rates are lower, refinancing may save you money. Consider how long you plan to stay in your home before deciding.

  3. 3

    Gather Necessary Documents

    Collect crucial documents, such as tax returns, pay stubs and details of your original mortgage, to speed up the process and ensure accuracy in your application.

  4. 4

    Shop Around for Lenders

    Evaluate lenders based on interest rates, customer service and fees. Comparing multiple offers helps you find the best terms and could save you thousands over the life of your loan.

  5. 5

    Understand the Costs Involved

    Be aware of closing costs, which average $2,861 in Kentucky, according to the National Association of Realtors. These can include appraisal fees, title insurance and other charges.

  6. 6

    Apply for the Loan

    Complete the application process with your chosen lender, ensuring accurate information. Use a checklist of required documents to streamline the process and avoid delays.

  7. 7

    Lock in Your Interest Rate

    Secure your rate with a mortgage rate lock. This protects you from rate increases during processing. Staying informed about market trends can help you decide the best time to lock in.

  8. 8

    Close on Your New Loan

    Finalize the loan by signing documents and paying any remaining fees. Scheduling your closing date at month-end may reduce prepaid interest charges, saving you money.

  9. 9

    Start Making Payments on Your New Loan

    Begin payments according to the new schedule. Setting up automatic payments can help ensure you never miss a due date, maintaining your credit score.

  10. 10

    Reevaluate When to Refinance a Mortgage

    Regularly review your mortgage terms against market rates and your personal situation. Tracking rate trends can help you spot refinancing opportunities that could save you money.

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HOW SOON CAN YOU REFINANCE A MORTGAGE?

In Kentucky, how soon you can refinance depends on the loan type. Conventional loans allow immediate refinancing, but a cash-out refinance usually requires a six-month seasoning period. USDA loans typically require a 12-month waiting period before refinancing.

The average refinance rate in Kentucky dropped to 5.86% in October, lower than in previous months, making it a good time to refinance. However, refinancing comes with additional closing costs, which can take years to recover. While you could refinance within a year, it’s worth considering only if interest rates drop significantly.

When to Refinance a Mortgage

Refinancing your mortgage can lower monthly payments by reducing interest rates. However, be mindful of closing costs, which could offset savings. Knowing the right time to refinance in Kentucky helps you maximize financial benefits. Explore the following situations where refinancing makes sense.

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    Lower Interest Rates

    Refinancing when interest rates are lower can reduce monthly payments. To find the best rates, check with local banks and credit unions, which often offer competitive rates to attract customers.

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    Increased Home Value

    Refinancing is wise when your property's value rises, as it boosts home equity. Improving curb appeal can increase value. With Kentucky’s average home value at $210,684, this could lead to better loan terms and lower interest rates.

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    Improved Credit Score

    A higher credit score can help you qualify for better refinancing rates. Paying bills on time and reducing debt can improve your score.

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    Shorter Loan Term

    Refinancing to a shorter loan term can save on interest and help pay off your mortgage faster. Benefits include lower interest costs and quicker equity buildup.

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    Switch Loan Type

    Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage offers stability. A fixed rate protects against market fluctuations, ensuring consistent payments. This makes budgeting easier and provides peace of mind throughout the loan.

Mortgage Refinancing in Kentucky: Is It Right for You?

Use MoneyGeek's free mortgage refinance calculator to determine whether refinancing is beneficial for your situation.

Mortgage Refinance Calculator

Make sure refinancing your existing home loan will save you money.

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Today's Mortgage Refinance Rates in Kentucky by Credit Score

Your credit score can affect the rates you qualify for. For example, the current average refinance rate in Kentucky for a 30-year fixed-rate loan with a loan-to-value ratio (LTV) of 80% or lower is 6.95% for credit scores between 680 and 740, compared to 6.74% for scores above 740. The table below shows average APRs for different credit scores and LTV ratios.

Data filtered by:Results filtered by:
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Loan Type:15-year Fixed
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Credit Score Range:680 - 740
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Loan-to-Value Ratio:80% - 95%
5.88%6.09%

Mortgage Refinance Rates in Kentucky by Loan Type

Loan type also affects the rates you qualify for. Kentucky's current refinance rates are 6.74% for a 30-year fixed-rate loan and 7.5% for a 30-year FHA fixed-rate loan. The table below shows average APRs for various loan types in the state.

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Loan Type:10-Year Fixed
6.25%6.45%

FAQ: Today's Mortgage Refinance Rates in Kentucky

Understanding refinance rates in Kentucky can be tricky due to fluctuating rates and economic changes. To simplify the process, we answer common questions about refinancing.

Should you refinance your mortgage?

How to get the best mortgage refinance rate?

What are the pros and cons of a mortgage refinance?

How much does it cost to refinance a mortgage?

What is the mortgage refinance rate in Louisville?

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


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