If so, you are in the right place! Get started by entering your personal confirmation number below.
Received an offer from us?
If so, you are in the right place! Get started by entering your personal confirmation number below.
Leaving SoFi Website
You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
When considering a home purchase in the Bluegrass State, understanding your home budget, down payment amount, and mortgage interest rate is key. A Kentucky mortgage calculator can be an invaluable tool, providing estimates and allowing you to run different scenarios to arrive at the right combination of price, down payment, and loan details. This guide will walk you through how to use such a calculator and explain the factors that influence your monthly housing costs, helping you make smart homeownership moves in Kentucky.
Key Points
• A Kentucky mortgage calculator estimates monthly payments based on home price, down payment, interest, and property taxes.
• Using a calculator helps buyers understand the true cost of homeownership and stay within a budget.
• It takes mere minutes to see how different scenarios affect your payments.
• Down payment assistance programs can reduce upfront costs and make homeownership more accessible.
• The mortgage preapproval process is another way to gain a clear understanding of monthly payments.
Kentucky Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. Accurate input ensures reliable estimates.
• Down payment: The down payment is the amount paid upfront, often a percentage of the home price. A 20% down payment avoids private mortgage insurance (PMI).
• Loan term: The loan term is the duration to repay the mortgage, typically 15 or 30 years. A 30-year term offers lower monthly payments, while a 15-year term reduces total interest paid.
• Interest rate: The interest rate is the cost of borrowing, expressed as a percentage of the loan amount. A higher rate increases monthly payments and total interest paid.
• Property tax: Property tax is a percentage of the home’s assessed value. The average effective tax rate in Kentucky is .73%, but rates range considerably (Louisville, for example, is .857%) so for the most accurate estimate, search for your city or ZIP code and “effective tax rate.”
• Monthly payment: The monthly payment includes principal, interest, and property tax. A Kentucky mortgage calculator provides a detailed estimate, helping you plan effectively.
• Total interest paid: Total interest paid is the amount of interest over the life of the loan. It is influenced by the interest rate, loan term, and loan amount.
• Total loan cost: The total loan cost includes principal and accumulated interest. Longer terms result in higher total interest payments.
How to Use the Kentucky Mortgage Calculator
Step 1: Enter Your Home Price
Enter the agreed-upon home price accurately to ensure precise mortgage estimates.
Step 2: Select a Down Payment Amount
Choose the down payment percentage to see how it affects your monthly mortgage payments. If you’re unsure about how much cash you need to get to a certain percentage of the home price, use a down payment calculator.
Step 3: Choose a Loan Term
Select a term of between 10 and 30 years based on your financial goals and budget constraints.
Step 4: Enter an Interest Rate
Input your desired interest rate to the second or third decimal point for accurate estimates.
Step 5: Add Your Property Tax
Enter the property tax rate as a percentage to estimate your total monthly payment.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator estimates monthly payments based on home price, loan amount, interest rate, and loan term. By factoring in local property tax, it gives a clearer picture of the total cost of homeownership.
Particularly if you are buying your first home, it’s helpful to put different scenarios into a mortgage calculator to see how your choices might affect your expenses, both month by month and over the long term. You’ll emerge with a good understanding of the downstream effects of different down payment sizes.
If the type of mortgage loan you choose has a variable interest rate, you can estimate your costs using this calculator, but the estimate will be less precise due to the fluctuations of a variable rate.
The median home sale price in Kentucky in mid-2025 was a relatively affordable $280,000, well below the U.S. average of more than $440,000 reported by Redfin. Lenders recommend that your home loan payment should not exceed 28% of your gross monthly income. To buy a $280,000 home with a 20% down payment (that’s $56,000) and a 30-year mortgage at 7.00%, you would need a minimum income around $67,000, though you would need more income if your down payment was smaller or if you are also carrying other debts. Your monthly mortgage payment would be $1,490.
You can also use a home affordability calculator to work backward from your annual income, factoring in your debts, to arrive at your ideal home price.
Another way to zero in on how much house you can afford is to go through the mortgage preapproval process with a lender. You’ll submit detailed financial information and if you qualify for a loan, the lender will provide you with an amount and estimated rate.
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount (the lump sum you borrow to buy the home) and the interest charged. A Kentucky mortgage calculator also factors in property tax. If your down payment is less than 20%, you would also need to pay for PMI. Some buyers also pay homeowners association (HOA) fees through monthly payments.
Homes purchased with a loan backed by the Federal Housing Administration (FHA) will have both upfront and annual mortgage insurance premium costs, so if you’re exploring an FHA loan, use an FHA mortgage calculator. And if you are thinking about a U.S. Department of Veterans Affairs (VA) mortgage, there’s a custom VA mortgage calculator for you.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in Kentucky
The cost of living in Kentucky can significantly influence how much house you can afford, and fortunately the state has a noticeably lower cost of living, weighing in at 92.5% of the U.S. average, according to the Missouri Economic Research and Information Center. Food costs can be on the high side in the state, while housing and utilities expenses are relatively low. There are still some properties here that will require a jumbo loan, however.
Of the two major metro areas, Lexington is the least expensive, at 91.9% of the U.S. composite index. Louisville, the other large city, scores 94.1%. But for bargain living, you’ll want to put down roots in Owensboro, Ashland, or one of the other best affordable places in the U.S. that are located here.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Once you own a home, you aren’t always stuck with your monthly payment amount for the duration. There are ways to reduce your payments. Check out these options:
• Request that your lender drop private mortgage insurance (PMI) once you reach 20% equity.
• Recast your mortgage by making a lump sum payment to reduce the principal, then asking the lender to recompute payments.
• Do a mortgage refinance to a lower interest rate to save money. Make sure you compare all-in costs, including closing costs, when you make this decision.
• Appeal your property tax assessment to lower your tax bill. Use caution when doing this — if you’ve made significant improvements to the property, a reassessment could backfire.
• Request that the lender modify your loan to reduce monthly payments if you face financial hardship.
• Extend the loan term to lower monthly expenses. This can get you out of a monthly budget crunch but it does increase total interest paid.
Kentucky down payment assistance programs can help cover initial needs if you’re struggling to come up with a down payment or closing costs to buy a home. Some programs are only accessible to those who qualify as a first-time homebuyer, though it’s possible to qualify if you haven’t owned a primary residence in the last three years. Many first-time homebuyer programs in Kentucky are run by the Kentucky Housing Corporation, although Lexington and Louisville each have city-specific programs.
The Takeaway
A Kentucky mortgage calculator is a valuable tool for estimating monthly mortgage payments and understanding the true cost of homeownership. It helps you determine if you’re within your budget by factoring in principal, interest rates, and property taxes. After using the calculator, explore prequalification and preapproval processes with lenders for a clearer idea of your potential loan terms and amount.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How does my credit score affect my mortgage loan interest rate?
Your credit score significantly impacts your mortgage interest rate. A higher score can result in a lender offering its most attractive interest rate, reducing the total cost of your mortgage. A lower score may mean a higher interest rate and stricter lending conditions — if you are approved at all.
What are principal and interest on a mortgage loan?
The principal and interest are the two key components of a mortgage payment. The principal is the original loan amount, and interest is the money you pay to the lender for the privilege of borrowing that amount. Each monthly payment you make on your loan includes some of each. Over time, more of your payment goes toward the principal, reducing the loan balance and interest paid. An amortization schedule, available with your loan documents, will tell you in detail how much of your monthly payment goes to cover each expense.
How much should I put down on a mortgage?
A first-time homebuyer can sometimes put down as little as 3% toward the purchase price of a home and for many buyers, this is a good idea. Bottom line? You should put as much money as you comfortably can toward a down payment on a home, while ensuring that you aren’t bankrupting your emergency fund or stopping payments on other debt. If you put down less than 20%, you will likely have to add private mortgage insurance payments to your monthly bill. Use a mortgage calculator to run different down payment scenarios and see how they impact costs.
Should I choose a 30-year or 15-year mortgage term?
A 30-year term offers lower monthly payments. A 15-year term could save you thousands of dollars in interest over the life of the loan, but will require a higher monthly payment. If you can make a 15-year or 20-year term work with your budget, go for it. But particularly if this is your first home purchase, don’t feel bad about locking in 30 years — many people choose this option.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
SOHL-Q325-089
