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Tennessee Mortgage Rates

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Use SmartAsset's mortgage comparison tool to compare mortgage rates from the top banks and find the one that best suits your needs.

Overview of Tennessee Mortgages

With its rich legacy of country music and sweeping mountain views, the Volunteer State is a vibrant place to call home. Tennessee mortgage rates are historically equal to or below the national average. The counties’ conforming and FHA loan limits are mostly uniform, but see a bit of variation throughout.

Today's Mortgage Rates in Tennessee

Product Today Last Week Change

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Tennessee Mortgage Rates Quick Facts
  • Average Home Value: $133,500 (zillow.com)
  • Loan Funding Rate: 59.9%
  • Average Mortgage Rate: 4.06%
  • Homeownership Rate: 66.5% (St. Louis Fed)
  • Average Annual Mortgage Payment: $6,165

Historical Mortgage Rates in Tennessee

Over the past 30 years, Tennessee mortgage rates have been close to the national average. The 2016 Tennessee mortgage rate is dead on with the national average.

Tennessee Historic Mortgage Rates

YearTennessee RateU.S. Rate
198214.3414.73
198312.4012.26
198411.3011.99
198510.7111.17
19869.759.79
19878.998.95
19888.828.98
198910.539.81
199010.049.74
19919.919.07
19928.187.83
19937.346.93
19947.587.31
19958.027.69
19967.777.58
19977.477.52
19986.886.97
19997.227.14
20007.997.86
20016.956.94
20026.556.44
20035.805.67
20045.855.68
20055.965.85
20066.586.54
20076.346.42
20086.036.06
20094.955.05
20104.704.81
20114.504.56
20123.633.65
20133.823.84
20144.114.13
20153.833.88

Tennessee Mortgages Overview

With its rich legacy of country music and sweeping mountain views, the Volunteer State is a vibrant place to call home. Before you begin looking for your dream home, it’s a wise idea to set a budget which will help keep you on track and narrow your search parameters. You can also consider applying for mortgage preapproval from a lender which may speed up the buying process.

Tennessee Mortgage Rates

Single-Family Homes
Percentage of Homes92.20%
Average Property Value$133,514.58
Condominiums
Percentage of Homes3.30%
Average Property Value$138,218.71
PUD Homes
Percentage of Homes2.20%
Average Property Value$151,529.76
Townhomes
Percentage of Homes2.30%
Average Property Value$139,663.60

The conforming loan limits for Tennessee are mostly at $417,000, but in some counties, the limits reach $437,000. FHA limits echo that pattern, ranging from the average of $271,050 up to $437,000.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Anderson$417,000$271,050
Bedford$417,000$271,050
Benton$417,000$271,050
Bledsoe$417,000$271,050
Blount$417,000$271,050
Bradley$417,000$271,050
Campbell$417,000$271,050
Cannon$437,000$437,000
Carroll$417,000$271,050
Carter$417,000$271,050
Cheatham$437,000$437,000
Chester$417,000$271,050
Claiborne$417,000$271,050
Clay$417,000$271,050
Cocke$417,000$271,050
Coffee$417,000$271,050
Crockett$417,000$271,050
Cumberland$417,000$271,050
Davidson$437,000$437,000
Decatur$417,000$271,050
Dekalb$417,000$271,050
Dickson$437,000$437,000
Dyer$417,000$271,050
Fayette$417,000$271,050
Fentress$417,000$271,050
Franklin$417,000$271,050
Gibson$417,000$271,050
Giles$417,000$271,050
Grainger$417,000$271,050
Greene$417,000$271,050
Grundy$417,000$271,050
Hamblen$417,000$271,050
Hamilton$417,000$271,050
Hancock$417,000$271,050
Hardeman$417,000$271,050
Hardin$417,000$271,050
Hawkins$417,000$271,050
Haywood$417,000$271,050
Henderson$417,000$271,050
Henry$417,000$271,050
Hickman$437,000$437,000
Houston$417,000$271,050
Humphreys$417,000$271,050
Jackson$417,000$271,050
Jefferson$417,000$271,050
Johnson$417,000$271,050
Knox$417,000$271,050
Lake$417,000$271,050
Lauderdale$417,000$271,050
Lawrence$417,000$271,050
Lewis$417,000$271,050
Lincoln$417,000$271,050
Loudon$417,000$271,050
McMinn$417,000$271,050
McNairy$417,000$271,050
Macon$437,000$437,000
Madison$417,000$271,050
Marion$417,000$271,050
Marshall$417,000$271,050
Maury$437,000$437,000
Meigs$417,000$271,050
Monroe$417,000$271,050
Montgomery$417,000$271,050
Moore$417,000$271,050
Morgan$417,000$271,050
Obion$417,000$271,050
Overton$417,000$271,050
Perry$417,000$271,050
Pickett$417,000$271,050
Polk$417,000$271,050
Putnam$417,000$271,050
Rhea$417,000$271,050
Roane$417,000$271,050
Robertson$437,000$437,000
Rutherford$437,000$437,000
Scott$417,000$271,050
Sequatchie$417,000$271,050
Sevier$417,000$271,050
Shelby$417,000$271,050
Smith$437,000$437,000
Stewart$417,000$271,050
Sullivan$417,000$271,050
Sumner$437,000$437,000
Tipton$417,000$271,050
Trousdale$437,000$437,000
Unicoi$417,000$271,050
Union$417,000$271,050
Van Buren$417,000$271,050
Warren$417,000$271,050
Washington$417,000$271,050
Wayne$417,000$271,050
Weakley$417,000$271,050
White$417,000$271,050
Williamson$437,000$437,000
Wilson$437,000$437,000

When you buy a home in Tennessee, you will receive a deed of trust instead of an actual mortgage. This is an important distinction because deeds of trust have a “power of sale” clause which allows lenders to foreclose on homes without getting a court order. The lender can bypass the expense and time of going to court and instead hire a third party to auction a home if the buyer has fallen behind on payments. You probably don’t foresee going into foreclose, but it is still a good idea to know where you would stand if the worst were to happen.

Tennessee state law mandates that a seller must provide a buyer with a disclosure form. The Tennessee Association of Realtors offers a comprehensive disclosure form, which includes details on known defects, items included in the sale, environmental hazards like mold, structural damage and even neighborhood noise problems. Buyers also have the option to waive the disclosure form and purchase the property “as is.” Whatever you decide, a buyer should always schedule a home inspection to protect the integrity of the sale and uncover any hidden defects.

30-Year Fixed Mortgage Rates in Tennessee

Buying your forever home in Tennessee? A 30-year fixed-rate mortgage is the most popular loan option. It’s worth exploring what getting one of these popular options would do to your monthly payments and your overall budget. Not only does this choice give you a long time to pay off the loan (30 years), but the interest rate will remain the same that entire time so you can more easily budget your monthly payments. You can also consider a 15-year fixed-rate mortgage which will allow you to pay off your loan in half the time and to pay less interest overall but your monthly payments will be higher with that option.

The average Tennessee mortgage rate for fixed-rate 30-year mortgages is 4.25%.

Tennessee Jumbo Loan Rates

Jumbo loans are home loans that are bigger than the conforming loan limit set in each county. In most parts of the country, and most parts of Tennessee, the limit is $417,000, meaning if you take out a home loan that’s more expensive than that you have a jumbo loan. If you’re considering a jumbo loan for your mortgage, keep in mind than they come with higher interest rates.

Fourteen Tennessee counties have conforming loan limits of $437,000. Those counties are Cannon, Cheatham, Davidson, Dickson, Hickman, Macon, Maury, Robertson, Rutherford, Smith, Sumner, Trousdale, Williamson and Wilson. In those areas you can take out a loan up to $437,000 and it will still qualify for a normal interest rate.

The average jumbo loan rate in Tennessee is 4.08%.

Tennessee ARM Loan Rates

Another option for buyers is an adjustable-rate mortgage (ARM). Unlike a fixed-rate mortgage, an ARM has an interest rate that changes over the duration of the loan. Typically for an introductory period of somewhere between one and 10 years, the interest rate on this loan will be lower than it would be on a fixed-rate mortgage. Once that period ends, the rate is free to increase or decrease, and that typically means it will go up.

However it is important to note that an ARM’s interest rate cannot simply skyrocket overnight. The interest rate will be capped at a certain level which will be specified in the terms of the loan. That said, the rate may still adjust to a level that an owner cannot afford to pay. It’s easy to see how owners may fall behind on monthly payments with this home loan option. To prevent that from happening to you, it is crucial that you assess the interest rate cap before you decide on an ARM and figure out whether it’s something that fits in your budget.

The average rate for an ARM in Tennessee is 2.59%.

Tennessee Mortgage Resources

Volunteer State buyers have options when it comes to securing a mortgage or financing their home purchases.

The Tennessee Housing Development Agency offers programs for first, repeat and military buyers:

  • Great Choice Loan Program provides qualifying first-time homebuyers with 30-year fixed-rate loans and down payment assistance. Applicants are required to take a homebuyer education course.
  • Great Choice Special Military Discount offers service members purchasing in Tennessee a 0.5% rate reduction on the Great Choice Loan Program. Applicants can also receive down payment and closing cost assistance through the Great Choice Plus second mortgage loan at a 0% interest rate.
  • Great Choice Plus offers repeat homebuyers 30-year fixed-rate loans from THDA with an optional 0% second mortgage for down payment assistance. The Plus loans can be used along with VA, FHA, USDA-Rural Development or uninsured conventional loans.

Available Resources

ResourceProblem or IssueWho QualifiesWebsite
Tennessee Housing Development AgencyProvides affordable loans and down payment assistance for Tennessee buyers.First-time, repeat and military homebuyers who fit the qualifications.https://thda.org/
USDA Rural Development - Single family loansOffers payment assistance to increase an applicant’s repayment ability. Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs
Home Affordable Refinance ProgramRefinancing.Single family homes and condos that fit within lending loan limits.http://www.harp.gov/

Tennessee is eligible for the United States Department of Agriculture Rural Development program. The USDA offers nationwide programs in rural communities which provide aid for safe, affordable housing. Loans and grants are available for people looking to purchase a new home or repair their current home.

Tennessee Mortgage Taxes

Tennessee charges transfer taxes on real estate, so be prepared for that if you’re buying as buyers typically pay this fee. The transfer tax is $0.37/$100, and the mortgage tax comes to $0.115/$100.

Homeowners across the country can deduct the mortgage interest they pay throughout the year from their taxable income when they are filing their federal income taxes.

Tennessee Mortgage Refinance

If you want to refinance in Tennessee, you can look into the state’s Home Affordable Refinance Program. Qualifying owners in single-family homes and condos have access to low closing costs and interest and principal payment reductions.

Best Places To Get A Mortgage

SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.

Worst
Better
Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment

Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.

To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Sources: Mortgage Bankers Association, US Census Bureau 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset