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Tennessee Mortgage Rates

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Use SmartAsset's mortgage rate comparison tool to compare mortgage rates from the top lenders 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 historically hover right around the national average. The state's counties have conforming and FHA loan limits that are mostly uniform, though there is some variation.

Today's Mortgage Rates in Tennessee

Product Today Last Week Change
30 year fixed 4.18% 4.18% 0.00
15 year fixed 3.44% 3.50% -0.06
5/1 ARM 3.00% 3.00% 0.00
30 yr fixed mtg refi 3.75% 4.06% -0.31
15 yr fixed mtg refi 3.44% 3.50% -0.06
7/1 ARM refi 3.63% 3.63% 0.00
15 yr jumbo fixed mtg refi 3.63% 3.63% 0.00

National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Historical Mortgage Rates in Tennessee

Photo Credit: ©iStock.com/Royce DeGrie

Tennessee Mortgage Rates Quick Facts

  • Median Home Value: $151,700 (U.S. Census Bureau)
  • Loan Funding Rate: 50.42% (CFPB)
  • Average Mortgage Rate: 4.56% (FHFA)
  • Homeownership Rate: 68% (St. Louis Fed)
  • Median Monthly Homeownership Costs: $1,224 (U.S. Census Bureau)

Tennessee has lots to offer prospective residents. It's the birthplace of country music and the landscape is beautiful throughout. On top of that, Nashville is renowned for its high quality southern cuisine.

The housing market is fairly standard in Tennessee. Over the past 30 years, mortgage rates here have been close to the national average.

A financial advisor in Tennessee can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.

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
20163.653.73
20174.014.03
20184.564.56

Tennessee Mortgages Overview

Before you begin looking for your dream home in Tennessee, it would be a wise idea to set up a budget to help keep you on track and realistic. You can also consider applying for mortgage preapproval from a lender, which may speed up the buying process.

The conforming loan limits for Tennessee are mostly at $510,400, but in some counties, the limits reach $563,500. FHA limits echo that pattern, ranging from the average of $331,760 up to $563,500.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Anderson$510,400$331,760
Bedford$510,400$331,760
Benton$510,400$331,760
Bledsoe$510,400$331,760
Blount$510,400$331,760
Bradley$510,400$331,760
Campbell$510,400$331,760
Cannon$563,500$563,500
Carroll$510,400$331,760
Carter$510,400$331,760
Cheatham$563,500$563,500
Chester$510,400$331,760
Claiborne$510,400$331,760
Clay$510,400$331,760
Cocke$510,400$331,760
Coffee$510,400$331,760
Crockett$510,400$331,760
Cumberland$510,400$331,760
Davidson$563,500$563,500
Decatur$510,400$331,760
Dekalb$510,400$331,760
Dickson$563,500$563,500
Dyer$510,400$331,760
Fayette$510,400$331,760
Fentress$510,400$331,760
Franklin$510,400$331,760
Gibson$510,400$331,760
Giles$510,400$331,760
Grainger$510,400$331,760
Greene$510,400$331,760
Grundy$510,400$331,760
Hamblen$510,400$331,760
Hamilton$510,400$331,760
Hancock$510,400$331,760
Hardeman$510,400$331,760
Hardin$510,400$331,760
Hawkins$510,400$331,760
Haywood$510,400$331,760
Henderson$510,400$331,760
Henry$510,400$331,760
Hickman$534,750$331,760
Houston$510,400$331,760
Humphreys$510,400$331,760
Jackson$510,400$331,760
Jefferson$510,400$331,760
Johnson$510,400$331,760
Knox$510,400$331,760
Lake$510,400$331,760
Lauderdale$510,400$331,760
Lawrence$510,400$331,760
Lewis$510,400$331,760
Lincoln$510,400$331,760
Loudon$510,400$331,760
McMinn$510,400$331,760
McNairy$510,400$331,760
Macon$563,500$563,500
Madison$510,400$331,760
Marion$510,400$331,760
Marshall$510,400$331,760
Maury$563,500$563,500
Meigs$510,400$331,760
Monroe$510,400$331,760
Montgomery$510,400$331,760
Moore$510,400$331,760
Morgan$510,400$331,760
Obion$510,400$331,760
Overton$510,400$331,760
Perry$510,400$331,760
Pickett$510,400$331,760
Polk$510,400$331,760
Putnam$510,400$331,760
Rhea$510,400$331,760
Roane$510,400$331,760
Robertson$563,500$563,500
Rutherford$563,500$563,500
Scott$510,400$331,760
Sequatchie$510,400$331,760
Sevier$510,400$331,760
Shelby$510,400$331,760
Smith$563,500$563,500
Stewart$510,400$331,760
Sullivan$510,400$331,760
Sumner$563,500$563,500
Tipton$510,400$331,760
Trousdale$563,500$563,500
Unicoi$510,400$331,760
Union$510,400$331,760
Van Buren$510,400$331,760
Warren$510,400$331,760
Washington$510,400$331,760
Wayne$510,400$331,760
Weakley$510,400$331,760
White$510,400$331,760
Williamson$563,500$563,500
Wilson$563,500$563,500

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 rate for a fixed 30-year mortgage is 3.81%.

Tennessee Jumbo Loan Rates

Jumbo loans are home loans that are bigger than the conforming loan limit set in each county. In many parts of the country, as well as most of Tennessee, the limit is $510,400. That means that if you take out a home loan that’s more expensive than that, you'll have a jumbo loan. If you’re considering a jumbo loan for your mortgage, keep in mind than they come with higher interest rates.

The average jumbo loan rate in Tennessee is 4.15%.

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 3.95%.

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.
  • Homeownership for the Brave 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 Qualifies
Tennessee Housing Development AgencyProvides affordable loans and down payment assistance for Tennessee buyers.First-time, repeat and military homebuyers who fit the qualifications.
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.

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 per $100, and the mortgage tax comes to $0.115 per $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, consider Fannie Mae's High Loan-to-Value Refinance Option. Each of these are basically replacements for the Home Affordable Refinance Program (HARP), which has been out of commission since the end of 2018.

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 2017 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset