Buying a Home in Kentucky: What You Need to Know
If you're considering buying a home in Kentucky, understanding the true cost of homeownership is essential. Beyond your mortgage payment, Kentucky homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses Kentucky-specific data to give you accurate monthly payment estimates.
Kentucky Property Taxes
Kentucky has an effective property tax rate of 0.73%, ranking #31 out of 50 states (where #1 is the highest). On a median-priced home of $263,000, you'd pay approximately $1,920 per year in property taxes, or about $160/month.
Kentucky's property tax rate is near the middle nationally. Property tax rates can vary by county, so check with your local tax assessor for exact rates in your area.
Kentucky Homeowners Insurance
The average annual homeowners insurance premium in Kentucky is $3,540 for $300,000 in dwelling coverage, or about $295/month.
Kentucky's insurance costs are moderate compared to national averages. You may be able to lower your premium by increasing your deductible, bundling with auto insurance, or installing security systems.
Kentucky Closing Costs
Closing costs in Kentucky average 0.91% of the home's purchase price. On a $263,000 home, that's approximately $2,393. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
Kentucky Housing Market
The median home price in Kentucky is $263,000. This is below the national median of approximately $410,000, making Kentucky one of the more affordable states for homebuyers. First-time buyers may find more options within their budget here.
More Kentucky Mortgage Tools
Use these additional calculators to plan your Kentucky home purchase: