Guide to refinancing in Kentucky. Current rates, state programs, costs, and lender options for Kentucky homeowners.
Kentucky offers affordable housing and low refinancing costs. From Louisville to Lexington and across the Bluegrass State, here's what you need to know about refinancing.
As of March 2026:
| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |
Use our refinance calculator for quotes.
KHC programs:
Mortgage Credit Certificate: KHC MCCs provide up to $2,000 annual tax credits. Keep with MCC-participating lender.
Much of Kentucky qualifies for USDA loans outside Louisville, Lexington, and Bowling Green.
Fort Knox and Fort Campbell. Veterans can use VA IRRRL streamline refinancing.
Kentucky has very low costs:
| Cost Item | Typical Amount | |-----------|---------------| | Lender origination fee | $0 - $1,800 | | Appraisal | $350 - $500 | | Title insurance | $500 - $900 | | Recording fees | $25 - $50 | | Total typical closing costs | $2,500 - $5,000 |
Kentucky has no state mortgage tax on refinances.
Refinance if rates dropped 0.75%+, you want to eliminate PMI, or consolidate debt. See our cash-out refinance guide.
Conventional, FHA Streamline, VA IRRRL, USDA Streamlined, Cash-Out all available.
1. How long does refinancing take? 25-35 days.
2. Will property taxes change? No.
3. Can I refinance rural property? Yes. USDA common in Kentucky.
4. What credit score needed? 580 FHA, 620 conventional, 740+ best rates.
5. Can I keep KHC MCC? Yes, with participating lender.
Kentucky's low costs make refinancing attractive. If rates dropped 0.75%+, you'll likely save.
Get quote: See rates here.
About the Author: Bill McCoy, licensed mortgage broker, 15 years experience.
Licensed mortgage broker with 15+ years of experience helping homeowners save money through refinancing. CA DRE #01212512.