Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Kentucky
Kentucky offers outstanding housing affordability, with an average home price of $185,000 that makes it one of the best-value states in the South and Midwest. Louisville is the state's largest and most economically diverse city, with a vibrant healthcare, logistics, and bourbon industry ecosystem. The Louisville market includes highly desirable suburbs like Prospect, Anchorage, and St. Matthews alongside more affordable neighborhoods in the East End and South End.
Lexington, home to the University of Kentucky and the heart of the Bluegrass horse country, is Kentucky's second city and commands somewhat higher prices than Louisville. The surrounding Fayette County suburbs offer a range of single-family homes in good school districts. Northern Kentucky — across the Ohio River from Cincinnati — has also grown significantly, with communities like Florence, Covington, and Newport benefiting from the economic spillover of the Cincinnati metro.
Kentucky's combination of low home prices, below-average property taxes, and the Kentucky Housing Corporation's generous assistance programs make it one of the easiest states in which to achieve first-time homeownership. The KHC offers up to $10,000 in down payment assistance, which can cover a substantial portion of the upfront costs on a typical Kentucky home.
Key Housing Facts for Kentucky
Average home price: $185,000
Average effective property tax rate: 0.80%
Average homeowners insurance: $1,500/year
Flat state income tax: 4.5%
Most active markets: Louisville, Lexington, Northern Kentucky (Cincinnati suburbs)
Kentucky's average effective property tax rate is approximately 0.80%, slightly below the national average. On a $185,000 home, you'd pay roughly $1,480 per year in property taxes. Kentucky property taxes are assessed by county property valuation administrators (PVAs), and rates can vary meaningfully between counties and cities.
Kentucky Housing Corporation (KHC) offers the Regular Down Payment Assistance program providing $6,000–$10,000 as a non-repayable grant or forgivable loan. The KHC Preferred Conventional and KHC FHA programs provide competitive interest rates for qualifying buyers. Income and purchase price limits apply by county and household size.
With Kentucky's average home price of $185,000, a 20% conventional down payment is $37,000. FHA loans require 3.5% ($6,475). KHC's down payment assistance of up to $10,000 can cover a significant portion of the down payment for qualifying buyers, making homeownership very accessible in Kentucky's affordable markets.
Closing costs in Kentucky typically range from 2–3% of the loan amount. On a $185,000 home, expect approximately $3,700–$5,550 in closing costs. Kentucky does not have a state mortgage recording tax, but county-level deed recording fees apply. Attorney review at closing is common but not universally required.