Also known as the Bluegrass State, Kentucky is one of the most impressive and tranquil places to live in the United States. Boasting a diverse range of topography that ranges from mountainous regions to rolling plains, Kentucky is a favorite among nature lovers. In addition, Kentucky is home to favorite attractions such as the Bowling Green, among others. Kentucky is simply one of the most American places in the country. Unfortunately, however, many residents of Kentucky barely survive from paycheck-to-paycheck. Many Kentucky homeowners may want to consider refinancing their mortgages as a means of reducing their monthly mortgage payments. Refinancing also provides a way for individuals to finance serious investments like college tuition or debt consolidation. Refinancing is the process by which individuals secure a new loan for the remaining balance on their existing home loan.
Quick Kentucky Housing Facts:
- Percent of homeowners in Kentucky: 70.8%
- Percent of renters in Kentucky: 29.2%
- Median annual income in Kentucky: $32,270
- Average credit score in Kentucky: 677
- Best Kentucky city to live in: Crestwood, KY
- Median Kentucky home value: $86,700
When to Refinance in Kentucky
Deciding when to refinance is a fairly delicate process. First of all, one must consider current interest rates. If current rates are consistently 1.5% below what you are currently paying, then it may be an ideal time to refinance. Otherwise, you may want to wait until rates drop. You must also research what your current mortgage allows in terms of penalties for paying your loan off early. Sometimes, homeowners end up being overly zealous about the prospect of refinancing, which causes them to spend unnecessary money on their refinancing package. It is also very important to consider on what you will be spending your money. In the event that you use your home equity to pay for a short-term investment, then refinancing will end up costing you more in the long-term. If you are looking to invest in something that will pay off in the long-term, such as a child’s education, or a second mortgage, then refinancing will save you money. It is also very important to explore all of your options with regard to refinancing. There are many agencies that charge hidden fees and charges upon completion of your refinancing agreement. Be sure to investigate your lender thoroughly in order to avoid additional costs and a potentially disastrous situation. Remember, the goal of refinancing is to save you money.
How much house can I afford in Kentucky
One of the biggest problems facing Kentucky homebuyers is figuring out how much house you can afford. We have some great mortgage calculators that can help you figure how much home will fit into your monthly budget. Other factors when trying to decide how much home you can afford are: what is your debt-to-income ratio, do you have other monthly payment obligations (credit cards, student loan debt, etc), and how long do you plan to stay in your home. For help answering these questions and more request a free mortgage quote and let us help you into your future home.
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