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.
A Lexington, Kentucky, mortgage calculator can be useful for anyone considering purchasing a home in Lexington. Whether you’re a first-time homebuyer or looking to refinance, the Lexington mortgage calculator can provide valuable insights into your monthly payments, total interest, and overall loan cost. Below is an in-depth look on how to use the mortgage calculator.
Key Points
• The Lexington mortgage calculator helps estimate monthly payments, total interest, and overall loan cost.
• To use the calculator, simply input the purchase price, down payment amount, interest rate, loan term, and property tax rate.
• The calculator allows you to see how different down payment amounts, interest rates, and loan terms affect your overall costs.
• Property taxes in Lexington are typically around 0.89% of the home’s assessed value, and are included in our mortgage calculator.
• Building your credit score can lead to a lower mortgage interest rate, reducing monthly payments and total interest paid.
Lexington Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. This figure directly impacts the amount of your home loan.
• Down payment: The down payment is the amount the homebuyer pays upfront, typically expressed as a percentage of the total home price. Most buyers put down between 3% and 20%. A larger down payment can reduce your monthly mortgage payments and potentially eliminate the need for private mortgage insurance (PMI).
• Loan term: The loan term is the length of time you have to repay your mortgage. Common terms include 15 and 30 years, though 10- and 20-year options are available. A shorter loan term can result in higher monthly payments but less interest paid over the life of the loan.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the home loan amount. Interest rates can vary based on market trends, borrower qualifications, and the type of mortgage loan. A lower interest rate can significantly reduce your monthly payments and the total interest paid over the life of the loan.
• Annual property tax: The annual property tax contributes to your monthly mortgage payment. In Lexington, property taxes are typically around 0.89% of the home’s assessed value.
• Total monthly payment: The total monthly payment includes the principal and interest. Our calculator also includes property taxes. Other components of your monthly payment may include private mortgage insurance, homeowners insurance, and homeowners association (HOA) fees.
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of your home loan. This figure can be substantial, especially for longer loan terms. To reduce the total interest paid, consider making extra payments toward the principal, refinancing to a lower interest rate, or choosing a shorter loan term.
• Total loan cost: The total loan cost is the all-in amount you will pay for your home loan, including both principal and interest. This cost can vary significantly based on the loan term, interest rate, and down payment.
How to Use the Lexington, KY Mortgage Calculator
Using the Lexington mortgage calculator can provide valuable insights into your home-buying budget. Here’s a step-by-step guide on how to use it:
Step 1: Enter Your Home Price
Enter the amount you will pay the seller for the property, which will directly impact your home loan amount and monthly payment.
Step 2: Select a Down Payment Amount
The down payment is the portion you pay upfront for the home, typically between 3% and 20%. A down payment calculator can help you decide on your number.
Step 3: Choose a Loan Term
Select the duration over which you will repay your mortgage. Most consumers choose a mortgage with either a 30-year or a 15-year term.
Step 4: Enter an Interest Rate
Input the interest rate you think you might qualify for to the second or third decimal point. A lower interest rate can significantly reduce your monthly payments and total loan cost. If you’re looking at large loan amounts (over $800K), you’ll want to look at rates for jumbo loans.
Step 5: Add Your Annual Property Tax Rate
Property taxes are what you will pay each year to the local government. Enter the property tax percentage, not the dollar amount. The Fayette County (Lexington) property tax rate is 0.89% of the home’s assessed value.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator estimates monthly payments and total loan costs. It assesses affordability based on loan amount, interest rate, and term. The calculator compares loan terms, showing how duration impacts expenses and total interest. It also demonstrates how down payments affect loans and potential PMI.
Mortgage calculators are also particularly useful for first-time homebuyers who may not be aware of all that goes into a mortgage payment and how that payment is determined. Keep in mind, though, that the calculator is designed for fixed-rate mortgages. If you choose a loan with a variable rate, your payment will not remain the same throughout the life of the loan.
By using a mortgage payment calculator, you can set realistic savings goals, plan your budget effectively, and ensure that your home purchase is financially feasible.
Deciding How Much House You Can Afford in Lexington
In Lexington, the median home sale price in 2025 was $345,000. Lenders advise keeping housing costs below 28% of gross monthly income. To afford a $345,000 home with a 20% down payment ($69,000) on a 30-year mortgage at 7.00% interest, you’d need about $79,000 in annual income. Your monthly mortgage payment would be $1,836.
Total debt should stay within 36% of your gross monthly income, meaning other debts shouldn’t exceed $525 monthly. Other debts include auto loans, student loans, and credit cards. Use a home affordability calculator for a rough estimate based on income and debt obligations.
It can be useful to go through the mortgage preapproval process with a potential lender to get a clear picture of how much of a loan you can afford.
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:
Components of a Mortgage Payment
The main components of a mortgage payment include the principal and interest. The principal is the amount you borrow to purchase the home, while the interest is the cost of borrowing that principal. Our Lexington mortgage calculator also factors in property tax.
Other components of a mortgage payment may include:
• Homeowners insurance: Protection against damage to your home and personal property.
• Private mortgage insurance (PMI): Required if your down payment is less than 20% of the home’s value.
• HOA fees: Monthly or annual fees paid to a homeowners association for maintenance and management of common areas and amenities in a community.
If you’re considering an FHA loan, you may want to use an FHA mortgage calculator, which allows for that kind of loan’s mortgage insurance premiums.
Likewise, a VA mortgage calculator can be helpful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living in Lexington, KY
The cost of living in Lexington is about 8% below the national average, according to COLI 2024 Annual Average Data. On an index where 100 is the U.S. average cost of living, Lexington weighs in at 91.9, making it an attractive city for residents seeking affordability without sacrificing amenities.
Housing is a particularly affordable aspect of living in Lexington, with median home prices and rental rates well below national figures. Here’s how Lexington compares to the national average in other areas:
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.
If you’re buying your first home, there are several Kentucky down payment assistance programs available to help you. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years. Down payment assistance programs can provide financial aid to cover the initial costs of purchasing a home, such as the down payment and closing costs. These programs can make homeownership more accessible and reduce the financial strain of entering the housing market.
If you’re looking to lower your monthly mortgage payment, consider the following strategies:
• Drop private mortgage insurance (PMI) once you reach 20% equity in your home. This can be achieved through regular payments or home appreciation, and it can significantly reduce your monthly costs.
• Consider mortgage recasting. Mortgage recasting involves your lender re-amortizing the loan with the same interest rate and term, but with a new, smaller balance. This can result in lower monthly payments without extending the loan term.
• Appeal your property taxes if you believe they are too high. Property taxes are based on an assessment of your home and the land it sits on, and if you think the assessment is inaccurate or unfair, you can challenge it through the proper channels.
• Extend the term of your loan to reduce monthly payments. For instance, if you originally had a 15-year mortgage, refinancing your mortgage to a 30-year loan term can significantly lower your monthly payments. However, this strategy comes with a trade-off: you’ll pay more in interest over the life of the loan.
• Shop for a lower homeowners insurance rate. You can potentially decrease your premium by opting for a higher deductible or bundling your homeowners and auto insurance policies together.
The Takeaway
Understanding the financial implications of different mortgage scenarios is a necessary step in the home-buying process. Our Lexington mortgage calculator helps you estimate monthly payments, calculate the total interest paid over the life of the loan, and determine the overall cost of the loan. This allows you to determine how much house you can afford and the impact of different down payments, loan terms, and interest rates on your monthly mortgage payment.
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.
The average mortgage in Lexington in 2025 was $2,000 per month. However, mortgage payments for the same size loan vary based on your down payment and interest rate.
What are principal and interest on a mortgage loan?
The principal is the amount you borrow to purchase the home, while the interest is the cost of borrowing that principal. In the early years of your mortgage, a larger portion of your monthly payment goes toward interest, but over time, more of it pays down the principal.
How much should I put down on a mortgage?
The amount you should put down on a mortgage depends on your financial situation and the type of loan you choose. Most people put down between 3% and 20% of the purchase price. A larger down payment can reduce your monthly payments and the total interest paid over the life of the loan. It can also help you avoid private mortgage insurance.
How much is a $600,000 mortgage payment for 30 years?
To estimate the total monthly payment for a $600,000 mortgage over 30 years, use the Lexington mortgage calculator. Assuming a 7.00% interest rate, the monthly payment on a $600,000 home loan would be approximately $3,992. For a $600,000 home with 20% down ($120,000), the payment would be $3,193, assuming other variables remain the same.
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-Q425-016
