Tennessee Mortgage and Refinance Rates

Written by Dhara Singh

As of Sunday, July 3, 2022, current rates in Tennessee are 5.64% for a 30-year fixed, 4.89% for a 15-year fixed, and 4.50% for a 5/1 adjustable-rate mortgage (ARM).

We’ll help you find Tennessee mortgage and refinance rates well below the national average so you can apply and start saving on your home today.

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Higher rates are on the way

Get ahead of anticipated rate hikes in 2022 and lock in a new refinance rate now.

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Tennessee mortgage overview

Though home values have been rising in recent years, Tennessee continues to be one of the more affordable states in the nation to purchase a home. The median home value in the Volunteer State is $192,630, according to Zillow, which is 29 percent below the national average.

First-time homebuyer programs in Tennessee

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 includes household income and purchase price limits, which vary by county.
  • Great Choice Plus: First-time homebuyers who qualify for a Great Choice Home Loan in Tennessee may also want to look into the Great Choice Plus program, which provides down payment assistance. That assistance is provided as a second loan for as much as 5 percent of a home’s purchase price, which can be used to either cover the down payment or closing costs. This program has several perks, including no interest on the second loan and no monthly payments. Instead, the money is paid back when you sell, move out of or refinance the property.
  • 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 Homeownership for the Brave 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.

Tennessee mortgage refinancing

Seeking to refinance your Tennessee mortgage? It can be done through the original lender who issued the mortgage or through an entirely new lender. Before you decide which path to take, be sure to shop around and compare available rates, fees and loan terms so that you get the best deal possible.

Tennessee mortgage resources