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Tennessee Mortgage and Refinance Rates

On Sunday, February 25, 2024, the national average 30-year fixed mortgage APR is 7.32%. The national average 30-year ... fixed refinance APR is 7.25%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

Current mortgage rates in Tennessee

Mortgage interest rates are reaching their highest levels since 2008. As of Sunday, February 25, 2024, current interest rates in Tennessee are 7.39% for a 30-year fixed mortgage and 6.81% for a 15-year fixed mortgage.

Refinance rates in Tennessee

Refinance rates in Tennessee are slightly higher. While interest rates no longer are at historic lows, you might still consider a cash-out refinance to pay for renovations or consolidate high interest debt. Use Bankrate’s mortgage refinance calculator to run the numbers.

Tennessee mortgage rate trends

Mortgage rates dipped as of late November 2023, with this trend currently expected  to continue into 2024. The record-low interest rates of 2021 are in the rearview mirror, however. This higher-interest rate environment, along with rising home prices, has made it difficult for many homebuyers in Tennessee to make their move.

National mortgage rates by loan type

Product Interest Rate APR
30-Year Fixed Rate 7.30% 7.32%
15-Year Fixed Rate 6.73% 6.76%
5-1 ARM 6.17% 7.33%
30-Year Fixed Rate FHA 6.38% 7.06%
30-Year Fixed Rate VA 6.68% 6.79%
30-Year Fixed Rate Jumbo 7.33% 7.35%

Rates as of Sunday, February 25, 2024 at 6:30 AM

 

 

Mortgage statistics for Tennessee

Tennessee has a rich cultural history and has become a popular place to live in recent years. Its most populated city, Nashville, was named by Bankrate the fifth best place to start a career. If you’re buying a home in Tennessee, here are some stats to know:

  • Median home value (as of Oct. 2023): $309,795 (Zillow)
  • Homeownership rate (as of Dec. 2022): 67.3% (Census Bureau)
  • Loan funding rate in 2022: 53.2% (Home Mortgage Disclosure Act)
  • Average mortgage loan size in 2022: $337,440 (Home Mortgage Disclosure Act)

Mortgage options in Tennessee

There’s a variety of mortgage options available to homebuyers in Tennessee. Here are some of the most common:

  • Tennessee conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. With a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
  • Tennessee FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
  • Tennessee VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.
  • Tennessee USDA loans: If you’re buying a rural property in Tennessee, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.

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 Heroes: In terms of features, the Homeownership for Heroes 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 Heroes 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 or USDA loan, and 96.5 percent with an FHA loan.
  • Take Credit MCC Program: 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.

How to find the best mortgage rate in Tennessee for you

  • Step 1: Strengthen your credit score - Before looking for a lender and applying for a loan, review your credit history and take steps to improve your score.
  • Step 2: Determine your budget - Have a good understanding of how much house you can afford before you go shopping.
  • Step 3: Know your mortgage options - There are a few different types of mortgages.
  • Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different lenders to get the best deal on rates, fees and terms.
  • Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation. Plus, it will show seller’s you’re serious when you make an offer.

Learn more about how to get a mortgage.

Lender compare

Compare mortgage lenders side by side

Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.

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Garden State Home Loans

NMLS: 473163

State License: MB-473163

3.6

Rating: 3.6 stars out of 5
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Rating: 4.98 stars out of 5

5.0

562reviews

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Homefinity

NMLS: 2289

State License: 4965

4.5

Rating: 4.5 stars out of 5
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Recent Customer Reviews

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Rating: 4.94 stars out of 5

4.9

1059reviews

Additional Tennessee mortgage resources