Current Tennessee Mortgage and Refinance Rates
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Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2000, he spent more than 20 years writing about real estate, business, the economy and politics.
On Wednesday, October 04, 2023, the national average 30-year fixed mortgage APR is 7.90%. The national average 30-year fixed refinance APR is 8.08%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
On Wednesday, October 04, 2023, the national average 30-year fixed mortgage APR is 7.90%. The national average 30-year fixed refinance APR is 8.08%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
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Current mortgage rates in Tennessee
Mortgage interest rates are reaching their highest levels since 2008. As of Wednesday, October 4, 2023, current interest rates in Tennessee are 8.00% for a 30-year fixed mortgage and 7.07% 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
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Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily ("overnight averages") and the other weekly ("Bankrate Monitor averages").For Bankrate's overnight averages, APRs and rates are based on no existing relationship or automatic payments. To determine the Bankrate Monitor mortgage rate averages, Bankrate collects APRs and rates from the 10 largest banks and thrifts in 10 large U.S. markets based on no existing relationship or automatic payments.Our advertisers are leaders in the marketplace, and they compensate us in exchange for placement of their products or services when you click on certain links posted on our site. This allows us to bring you, at no charge, quality content, competitive rates and useful tools.
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.