Kentucky Mortgage – Conventional Mortgage Loan
When looking at Kentucky mortgage rates, please take note of this. A conventional mortgage loan is generally a loan made using private mortgage money. Also, it is not backed by a government entity, such as FHA, VA or USDA.
Conventional mortgages are available in fixed rate. Also, they have adjustable rate varieties. Furthermore, they come with a wide range of terms. A conventional loan that meets a number of specific criteria is known as conventional conforming mortgage.
Tabular Sketch of Current Mortgage Rates in Kentucky
|30 year fixed||3.88%||4.21%||-0.33|
|15 year fixed||3.44%||3.44%||0.00|
|30 yr fixed mtg refi||3.88%||3.88%||0.00|
|15 yr fixed mtg refi||3.50%||3.50%||0.00|
|7/1 ARM refi||9.13%||9.13%||0.00|
|15 yr jumbo fixed mtg refi||3.55%||3.25%||+0.30|
Historical Overview of Kentucky Mortgage Rates
Kentucky mortgage rates are slightly higher than or around the national average. Below is the tabular sketch of Kentucky mortgage rates:
Kentucky Historic Mortgage Rates
|Year||Kentucky Rate||U.S. Rate|
Some Laws on Kentucky Mortgage
When looking at Kentucky mortgage rates, please take note of this. Disclosure laws in Kentucky require that sellers disclose plumbing or electrical problems. Also, these laws require that roof details, conditions like termites or radon gas are disclosed too. Furthermore, home owners’ association fees and other property information are to be disclosed.
Even with those seller disclosures, please note. A home inspection is still the best. It is the best way for a buyer to feel confident in a property purchase. A quality home inspection will help you attend your closing with confidence. Because, you will know you’re not about to move into a major money pit.
Common Type of Home Loan in Kentucky
30-Year Fixed-Rate Mortgage
If you are in the market for a home loan in Kentucky, please not. You will likely choose a 30-year fixed-rate mortgage. This is the most common type of home loan. You have 30 years to pay off this loan. Also, your monthly payments will remain the same. This is for the duration of the time as the interest rate stays steady.
Additionally, you generally have the option of choosing a 15-year or 20-year term. Here, you will pay off your loan in less time. Also, your interest rate will be lower.
When looking at Kentucky mortgage rates, please take note of this. However, your monthly payments will be higher. It is important you know this. Average Kentucky mortgage rate for 30-year fixed-rate mortgages is 3.9%.
Kentucky Jumbo Loan Rates
When looking at Kentucky mortgage rates, please take note of this. Kentucky conforming loan limits are uniform at $453,100. This is a reflection of the mostly affordable real estate in the state. Be aware that you will have what is considered a jumbo loan. That’s if your dream home in Kentucky leads you to take out a loan that is greater than $453,100.
Jumbo loans are loans that exceed the conforming limit in that county. Conforming loan limits are in place for some reason. They are there because issuing a loan beyond that price is riskier for lenders. This is because more money is at stake.
To offset that risk, jumbo loans come with higher interest rates. This might be a reason to stick with a home and a mortgage that fits comfortably within your budget. The average jumbo loan rate in Kentucky is 3.6%.
Kentucky ARM Loan Rates
When looking at Kentucky mortgage rates, please take note of this. An adjustable-rate mortgage (ARM) has an interest rate that can change. ARMs are attractive because they usually offers a lower initial interest rate. This is the case when compared to a fixed-rate mortgage.
That lower rate is offered for one, three, five, seven or 10 years. This depends on the loan’s terms. Once that period ends, the rate can increase or decrease. However, it will generally go up.
Additionally, the interest rate is capped a certain level in the loan’s term. As such this means you will know from the maximum possible interest rate. The average rate for an ARM in Kentucky is 4.4%.
Kentucky Mortgage Resources
When dealing with Kentucky mortgage rates, be conscious of the resources. You have resources to choose from if you need assistance purchasing a home in the Bluegrass State. The Kentucky Housing Corporation offers a few different programs for home buyers:
Down Payment and Closing Cost Assistance
When dealing with Kentucky mortgage rates, be conscious of this. Down payments and closing costs can prevent you from buying a home. The Regular DAP offers assistance via loans up to $6,000. This is repayable over the course of 10 years.
Also, this is available to all Kentucky Housing Corporation first-mortgage loan recipients. The Affordable DAP provides assistance up to $4,500. Additionally, this comes at a lower term rate. Borrowers must meet certain household income limits.
Housing Counseling and Education
When dealing with Kentucky mortgage rates, be conscious of this. Counseling and education courses are available for pre-purchase and home buying. It prevents mortgage delinquency, improving mortgage terms and home improvement. Also, it prevents reserve mortgage and homelessness assistance.
Other Available Resources
|Resource||Problem or Issue||Who Qualifies||Website|
|Kentucky Housing Corporation||Home ownership counseling and down payment/closing cost assistance.||KHC first mortgage loan recipients and income-eligible applicants.||http://www.kyhousing.org/Pages/default.aspx|
|USDA Rural Development – Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible non-citizen requirements; Not be suspended or debarred from participation in federal programs.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single-family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
Please Note: U.S Department of Agriculture Rural Development offers nationwide programs in rural communities. This provides aid for safe and affordable housing. Kentucky is eligible as well.
Loans and grants are available for people looking to purchase a new home. Also, they are available to those who wants to repair their current home. Check at the start of your home search to see if you qualify for the USDA rural development offers.
Kentucky Mortgage Taxes
When dealing with Kentucky mortgage rates, be conscious of this. It’s important to note that Kentucky charges a 0.1% real estate transfer tax. This fee is generally paid by sellers. However, homeowners are allowed to deduct the mortgage interest.
This is when they pay when they file their federal income taxes. Homeowners in certain states can also include that mortgage interest deduction on their state income taxes. Kentucky is one of those states as its itemized deductions rules follow federal rules closely.
In a Nutshell