Current Tennessee Mortgage and Refinance Rates
On Thursday, June 01, 2023, the national average 30-year fixed mortgage APR is 7.10%. The national average 30-year fixed refinance APR is 7.14%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
Bankrate has offers for Tennessee mortgage and refinance loans from top partners that are well below the national average. Compare, apply, and start saving today.
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About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.
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Loans Above $726,200 May Have Different Loan Terms: If you are seeking a loan for more than $726,200, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.
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Current mortgage rates in Tennessee
Mortgage interest rates are reaching their highest levels since 2008. As of Thursday, June 1, 2023, current interest rates in Tennessee are 7.15% for a 30-year fixed mortgage and 6.44% for a 15-year fixed mortgage.
The typical home value in Tennessee is $305,613, below the national median of $389,500. Demand for housing in the state is increasing, as Tennessee was the nation's third-most top growth state in 2021. Home prices are likely to climb higher, and your home's value may increase over time.
Refinance rates in Tennessee
If you're looking to lower your interest rate, refinancing in Tennessee can be a smart move. You may benefit from the tight housing market. If the equity in your home continues to rise, it might be easier for you to get your refinance application approved. Check out the Bankrate Mortgage Refinance Calculator to learn how much you could save.
How to find the best mortgage rate in Tennessee for you
Mortgage options in Tennessee
First-time homebuyer programs in Tennessee
In addition to conventional loans and FHA loans, the Tennessee Housing Development Agency (THDA) offers a handful of programs designed to assist first-time homebuyers:
- Great Choice Home Loans: The Great Choice Home Loan program is aimed at moderate-income buyers. It offers 30-year fixed-rate mortgages to those with credit scores as low as 640. The program comes with household income and purchase price limits, which vary by county, as well as down payment assistance.
- Homeownership for the Brave: In terms of features, the Homeownership for the Brave program is very similar to Tennessee's Great Choice Home Loan for first-time homebuyers. It offers a 30-year fixed interest rate and has a minimum credit score requirement of 640. Interest rates through Homeownership for the Brave are reduced a half-percentage point; the requirement that you be a first-time homeowner to participate is waived; and buyers are able to borrow as much as 100 percent of a property's purchase price with a VA-backed loan.
- Take Credit MCC Program: One more notable program for those home shopping in Tennessee, the Take Credit Mortgage Credit Certificate (MCC) provides a federal income tax reduction for those who purchase a property in one of the state’s Targeted Areas. In addition to first-time homebuyers, Take Credit MCC is open to veterans or repeat homebuyers, as long as the property is located in one of the state’s qualifying Targeted Areas. MCC participants are eligible for a federal tax credit of as much as $2,000 annually, which can be used to decrease the homebuyer’s income tax liability year after year, as long as the house remains the primary residence.