Mortgage Rates in Florence, Kentucky — March 2026
Updated March 2026 | Based on Florence market data and regional lending conditions
Florence is a growing city in Kentucky with a population of 32,921. The current 30-year fixed mortgage rate in Florence is 6.61%, which is 0.04% below the national average. With a median home price of $171,000 and a 20% down payment of $34,200, homebuyers can expect a monthly principal and interest payment of approximately $875.
Current Mortgage Rates in Florence, KY
Below are the current average mortgage rates available in the Florence area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.61% | 6.65% | -0.04% |
| 15-Year Fixed | 5.88% | 5.89% | -0.01% |
| 5/1 ARM | 6.17% | 6.15% | +0.02% |
| FHA | 6.43% | 6.25% | +0.18% |
| VA | 6.18% | 6.05% | +0.13% |
| Jumbo | 6.86% | 6.85% | +0.01% |
Florence Housing Market Overview
The Florence housing market offers relatively affordable housing compared to many major cities. The median household income in Florence is $51,700, and the cost of living index is 84 (national average = 100). Based on the 28% affordability rule, the median income in Florence is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Florence
Based on the median home price of $171,000 with 20% down ($34,200), here is what you can expect to pay monthly in Florence:
15-Year vs. 30-Year Mortgage in Florence
Choosing a 15-year mortgage in Florence at 5.88% instead of a 30-year at 6.61% would save you $108,720 in total interest over the life of the loan. However, your monthly payment would be $1,146 instead of $875 — an increase of $271 per month.
Calculate Your Florence Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Florence
What are the current mortgage rates in Florence, KY?
As of March 2026, the average 30-year fixed mortgage rate in Florence, Kentucky is 6.61%, while the 15-year fixed rate is 5.88%. FHA loans average 6.43% and VA loans 6.18%. These rates are 0.04% below the national average of 6.65%.
How much is a monthly mortgage payment in Florence?
Based on the median home price of $171,000 with 20% down, the estimated monthly mortgage payment in Florence is $875 for principal and interest. Including property taxes of $114/month, the total monthly housing cost is approximately $989.
What income do I need to buy a home in Florence?
Using the 28% rule, you would need an annual income of approximately $42,386 to afford the median-priced home in Florence at $171,000. The median household income in Florence is $51,700. The median income is currently sufficient to meet this threshold.
Is Florence a good place to buy a home in 2026?
Florence offers a below-average cost of living with a cost of living index of 84 (national average = 100). The property tax rate in Kentucky is 0.8%, which is below the national average. Florence has a population of 32,921 and offers a very affordable lifestyle.
Mortgage Rates in Other Kentucky Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Florence, Kentucky area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.