Mortgage rates in Tennessee
30-yr fixed 7.18% · Freddie Mac PMMS, week of Nov 5, 2026 · APR benchmark 7.19% (APOR for locks from Nov 9, 2026) · Last reviewed Oct 18, 2026 by the Editorial Team
Nashville has been one of the South’s hottest housing markets.
Mortgage rates today by loan type
These are national averages. Lenders in Tennessee price off the same national market, so treat them as a benchmark: your quote depends on your credit, down payment, loan size and points. The APR benchmark folds in typical points and fees, so it shows what a prime borrower's APR looks like this week.
| Loan type | Avg rate | APR benchmarkAPOR | Source · as of | What it measures |
|---|---|---|---|---|
| 30-year fixed | 7.18% | 7.19% | Freddie Mac PMMSNov 5, 2026 | Conventional purchase loans, 20% down, strong credit; weekly survey |
| 20-year fixed | 6.66% | 6.93% | Zillow (via NerdWallet)Nov 6, 2026 | Lender-quoted average; checked by hand every two weeks |
| 15-year fixed | 6.57% | 6.67% | Freddie Mac PMMSNov 5, 2026 | Conventional purchase loans, 20% down, strong credit; weekly survey |
| 10-year fixed | 6.31% | 6.82% | Zillow (via NerdWallet)Nov 6, 2026 | Lender-quoted average; checked by hand every two weeks |
| 5-year ARM | 6.73% | 6.67% | Zillow (via NerdWallet)Nov 6, 2026 | Fixed for 5 years, then adjusts; APOR = prime ARM benchmark |
| 7-year ARM | — | 6.50% | APOR, locks from Nov 9, 2026 | No free rate series; APOR benchmark only |
| 10-year ARM | — | 6.63% | APOR, locks from Nov 9, 2026 | No free rate series; APOR benchmark only |
| FHA 30-year | 6.89% | — | Optimal Blue OBMMINov 5, 2026 | Locked FHA loans, all credit profiles; daily |
| VA 30-year | 6.71% | — | Optimal Blue OBMMINov 5, 2026 | Locked VA loans; daily |
| USDA 30-year | 6.86% | — | Optimal Blue OBMMINov 5, 2026 | Locked USDA loans; daily |
| Jumbo 30-year | 7.25% | — | Optimal Blue OBMMINov 5, 2026 | Locked loans above the conforming limit; daily |
APR benchmark = FFIEC/CFPB Average Prime Offer Rate for rate locks in the week starting Nov 9, 2026 (published in advance): a prime borrower's APR including typical points and fees. It is not a quote; your APR depends on credit, down payment and the points you pay. APOR is not published for FHA, VA, USDA or jumbo loans.
Calculate your Tennessee mortgage payment
The calculator starts from Tennessee's median list price, 20% down, the state's 0.44% effective property tax, its median insurance premium and its average closing costs. Switch to FHA or VA, change the down payment, or pick your county to set its conforming limit. For the month-by-month split of principal and interest, open the payment-by-payment schedule. To see how Tennessee's property tax and insurance compare with every other state, try the tax and insurance calculator.
Tennessee vs. the U.S.
Tennessee's median list price is close to the U.S. median, so at the same 7.18% rate the principal and interest on a 20%-down loan is within $54 a month of the national figure. Five-year price growth here was the 10th-fastest of 51 jurisdictions.
| Measure | Tennessee | U.S. |
|---|---|---|
| Median list priceRealtor.com, Oct 2026 | $425,000 | $415,000 |
| Principal + interest, 20% down30-yr avg 7.18% | $2,303 | $2,249 |
| Average home-purchase loanHMDA 2025 | $375,241 | $404,828 |
| Average closing costsincl. transfer taxes | $5,063 | $4,661 |
| Median conventional rate paid2025 purchase loans | 6.50% | 6.50% |
| Mortgage approval rateHMDA 2025 | 77.2% | 76.6% |
| Home values, 1 yearFHFA index, Q2 2026 | +2.6% | +3.0% |
| Home values, 5 yearsFHFA index, Q2 2026 | +50.0% | +41.3% |
What Tennessee borrowers actually paid in 2025
This is the state-specific part. Federal HMDA records show the rate and costs on every Tennessee home-purchase loan closed in 2025. We compare like with like: 30-year fixed, first-lien, one-unit primary homes. On conventional loans, Tennessee borrowers paid right at the market benchmark at lock, the 22nd-lowest of all 50 states and the District of Columbia.
| 2025 purchase loans | Median rateTN · U.S. | Over benchmarkTN · U.S. | Closing costsTN · U.S. | Paid pointsshare of loans | Median downequity on refis · TN |
|---|---|---|---|---|---|
| Conventional 30-yr fixed (conforming, 20%+ down)16,347 loans | 6.50%6.50% | +0.00+0.02 | $5,085$5,476 | 58.1%53.2% | 25% |
| Jumbo 30-yr fixed (20%+ down)561 loans | 6.63%6.63% | +0.03+0.00 | $8,914$10,251 | 45.8%38.4% | 20% |
| FHA 30-yr fixed13,916 loans | 6.25%6.25% | +0.42+0.42 | $11,072$11,291 | 63.6%59.3% | 3.5% |
| VA 30-yr fixed9,000 loans | 6.13%6.13% | −0.37−0.36 | $6,129$6,554 | 64.0%59.3% | 0% |
| Conventional rate-and-term refinance3,232 loans | 6.38%6.38% | −0.05−0.06 | $5,041$4,390 | 54.7%45.4% | 33.3% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), medians. "Over benchmark" = rate spread, the APR minus APOR on the lock date, which removes the effect of when each loan locked. Closing costs = total loan costs on the Closing Disclosure. HMDA has no credit scores, so these are what borrowers paid, not what you will be offered. See the lenders active in Tennessee and what their borrowers paid.
Tennessee's biggest conventional lenders: what their borrowers paid
The 8 largest conventional lenders in Tennessee by 2025 purchase loans, out of 965 that made one. Each row is the median for that lender's comparable loans here: 30-year fixed, conforming, 20% or more down. A lower figure over the benchmark means cheaper pricing for the same week.
| Lender | 2025 loansshare in TN | Median rate | Over benchmark | Originationmedian | Paid pointsshare · median | Median down |
|---|---|---|---|---|---|---|
| United Wholesale Mortgage | 2,4584.2% | 6.50% | +0.01 | $3,824 | 58%$2,459 | 25% |
| Rocket Mortgage | 2,0333.5% | 6.50% | +0.04 | $3,764 | 69%$3,168 | 25% |
| FirstBank | 1,8243.1% | 6.63% | +0.03 | $1,350 | 46%$1,619 | 25% |
| CMG Home Loans | 1,7303% | 6.63% | +0.07 | $3,106 | 75%$2,417 | 25% |
| Mortgage Investors Group, Inc. | 1,5762.7% | 6.63% | +0.08 | $2,095 | 63%$1,520 | 25.3% |
| Pinnacle Bank | 1,4072.4% | 6.50% | −0.08 | $1,348 | 49%$1,052 | 26.3% |
| Vanderbilt Mortgage And Finance, Inc. | 1,3792.4% | 6.43% | −0.11 | $2,932 | 74%$3,230 | 23.4% |
| DHI Mortgage | 1,1031.9% | 5.99% | −0.65 | $0 | 62%$1,777 | 25.6% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), lenders with at least 30 comparable loans in Tennessee. Minimum credit scores are not shown here: conventional loans usually start at 620 (a lender floor; Fannie Mae's automated underwriting sets none), FHA 580 (500 with 10% down), VA none set by VA (lenders often 620). HMDA has no credit scores, so a lender's medians reflect its own mix of borrowers. FHA and VA lenders: Tennessee lender rankings.
How rates have moved
Weekly national averages over the past 30 days to 5 years. The 30- and 15-year lines are Freddie Mac average rates; the ARM lines are the APOR APR benchmark, because no free weekly ARM rate series exists.
- Now
- 7.18%
- Nov 5, 2026
- 1 week ago
- 7.24%
- −0.06 pts
- 1 month ago
- 7.40%
- −0.22 pts
- 1 year ago
- 6.22%
- +0.96 pts
30-year fixed: Freddie Mac PMMS (rate), weekly. National series.
What a mortgage costs in Tennessee
On a home at Tennessee's median list price of $425,000 with 20% down, the balance comes to $340,000, or about $2,303 a month in principal and interest at the 7.18% 30-year average.
What makes Tennessee different is the cost around the loan. Its 0.44% effective property-tax rate adds roughly $156 a month, and homeowners insurance — at the state's median 0.40% of home value — about $142 more, bringing the all-in estimate to $2,601. That figure is principal and interest at the 30-year average, property tax and insurance; at 20% down a conventional loan has no PMI, and HOA dues or local special assessments are not included. Your own price and down payment will move the number — work backward from your income with the home affordability tool.
Payment at the $425,000 median list price by down payment and loan type
| Loan | Rate | Monthlyall-in | Mortgage ins. | Cash to close | Income needed28% rule · yearly |
|---|---|---|---|---|---|
| Conventional, 20% downNo PMI | 7.18%Freddie Mac 30-yr avg | $2,601P&I $2,303 | — | $90,063 | $111,000 |
| Conventional, 10% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $3,112P&I $2,591 | $223 | $47,563 | $133,000 |
| Conventional, 5% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $3,268P&I $2,735 | $236 | $26,313 | $140,000 |
| Conventional, 3% downPMI est. 0.7%/yr | 7.18%Freddie Mac 30-yr avg | $3,331P&I $2,793 | $240 | $17,813 | $143,000 |
| FHA, 3.5% down1.75% upfront MIP financed + annual MIP | 6.89%OBMMI FHA avg | $3,231P&I $2,746 | $188 | $19,938 | $138,000 |
| VA, 0% down2.15% funding fee financed; no monthly MI | 6.71%OBMMI VA avg | $3,102P&I $2,804 | — | $5,063 | $133,000 |
Monthly = principal and interest + property tax (0.44% effective) + homeowners insurance (about $142/mo — Tennessee's median premium, 0.40% of home value) + mortgage insurance. HOA dues and local special assessments are not included. Cash to close = down payment + Tennessee's average closing costs ($5,063). PMI is an illustrative 0.7% a year; FHA and VA figures use HUD's MIP schedule and VA's first-use funding fee. Income needed = the gross yearly income at which the monthly figure is 28% of pay, the classic housing-cost guideline. Lenders also limit your total monthly debts as a share of income, so car, student-loan and card payments raise the income you need.
Prices, loan limits and payments in Tennessee's biggest counties
Home prices, and so the loan you need, vary more inside Tennessee than rates do. The table covers the largest county markets and the high-cost counties where the conforming limit is higher. Pick a row to load it into the calculator above.
| County | Median list priceSep 2026 · yr/yr | Avg purchase loanHMDA 2025 | Conforming limitmax price at 20% down | At 20% down | Est. paymentP&I + tax + ins. | Calculator |
|---|---|---|---|---|---|---|
| Davidson County4,621 homes for sale · Sep 2026 | $525,000-4.5% | $531,4039,080 loans | $1,029,250$1,286,562 | Conforming$420,000 loan | $3,213at 7.18% | |
| Shelby County3,725 homes for sale · Sep 2026 | $247,775-12.6% | $307,5867,803 loans | $832,750$1,040,937 | Conforming$198,220 loan | $1,516at 7.18% | |
| Sevier County2,180 homes for sale · Sep 2026 | $589,500-8% | $465,6302,016 loans | $832,750$1,040,937 | Conforming$471,600 loan | $3,607at 7.18% | |
| Hamilton County2,092 homes for sale · Sep 2026 | $416,825-2.2% | $363,2485,040 loans | $832,750$1,040,937 | Conforming$333,460 loan | $2,551at 7.18% | |
| Knox County1,924 homes for sale · Sep 2026 | $419,750-1.2% | $393,6646,900 loans | $832,750$1,040,937 | Conforming$335,800 loan | $2,569at 7.18% | |
| Williamson County1,677 homes for sale · Sep 2026 | $1,155,000+0.9% | $824,6923,897 loans | $1,029,250$1,286,562 | Conforming$924,000 loan | $7,068at 7.18% | |
| Montgomery County1,673 homes for sale · Sep 2026 | $349,999+0.2% | $326,9274,578 loans | $832,750$1,040,937 | Conforming$279,999 loan | $2,142at 7.18% | |
| Rutherford County1,549 homes for sale · Sep 2026 | $479,450+1.4% | $390,7295,018 loans | $1,029,250$1,286,562 | Conforming$383,560 loan | $2,934at 7.18% | |
| Sumner County1,195 homes for sale · Sep 2026 | $479,948-2.1% | $420,5553,471 loans | $1,029,250$1,286,562 | Conforming$383,958 loan | $2,937at 7.18% | |
| Wilson County942 homes for sale · Sep 2026 | $564,675+2.7% | $461,3832,958 loans | $1,029,250$1,286,562 | Conforming$451,740 loan | $3,456at 7.18% | |
| Maury County760 homes for sale · Sep 2026 | $493,850+7.5% | $376,2332,036 loans | $1,029,250$1,286,562 | Conforming$395,080 loan | $3,022at 7.18% | |
| Cumberland County614 homes for sale · Sep 2026 | $399,000-4.3% | $264,448743 loans | $832,750$1,040,937 | Conforming$319,200 loan | $2,442at 7.18% | |
| Robertson County400 homes for sale · Sep 2026 | $435,820+8.3% | $349,5701,337 loans | $1,029,250$1,286,562 | Conforming$348,656 loan | $2,667at 7.18% | |
| Dickson County317 homes for sale · Sep 2026 | $420,000+0.1% | $342,304805 loans | $1,029,250$1,286,562 | Conforming$336,000 loan | $2,570at 7.18% |
Sources: Realtor.com county research data (median listing price, Sep 2026); FHFA 2026 one-unit conforming limits; 2025 HMDA home-purchase originations (average loan, all loan types). Payments use the 30-year average (7.18%, or the jumbo average 7.25% above the limit), Tennessee's 0.44% effective property tax and its median insurance premium (0.40% of value), both from Census ACS 2024 data; county tax rates differ. Max price at 20% down = the county limit ÷ 0.8, the highest price at which a 20%-down loan stays conforming. Homes for sale = active Realtor.com listings in the month, excluding pending sales.
What's different about buying a home in Tennessee
Rates are national, but the rules around the loan are not. These Tennessee specifics can change your payment, your closing or your protections as a borrower.
Homes assessed at 25%, reappraised on a cycle
Tennessee assesses residential property at 25% of its appraised value, and appraisals are established during periodic reappraisal programs on a 4-year, 5-year or 6-year cycle. Between reappraisals, appraisals generally stay constant unless the property changes, so ask the county assessor when the next reappraisal is due.
Source: comptroller.tn.govStandard homeowners policies exclude earthquake damage
The Tennessee Department of Commerce & Insurance says traditional homeowners policies do not cover earthquake damage, and earthquake insurance is available to purchase from licensed insurance producers. Its deductible is usually 10% to 20% of the coverage limit, or $20,000 at 10% on a $200,000 home.
Source: tn.govSellers must disclose property condition in writing
Under the Tennessee Residential Property Disclosure Act, anyone transferring title to residential real property must provide information about its condition. The completed form is not a warranty or a substitute for professional inspections, and the sales agreement supersedes it on the seller's repair obligations, so put any promised repairs in the contract.
Source: capitol.tn.govChecked against official sources on October 20, 2026. Laws and programs change; confirm details with the agency named or a local real estate attorney.
How Tennessee buyers finance their homes
USDA loans are where Tennessee stands out: they made up 1.1% of home loans originated here in 2025, against 0.6% nationally — the 10th-highest USDA share of any state. Lenders, agents and appraisers here handle USDA deals routinely, which helps if that is the loan you need.
| Loan type | Share in TN | U.S. share | Approval in TN | Avg loan in TN |
|---|---|---|---|---|
| Conventional | 72.3% | 78.0% | 75.9% | $319,845 |
| FHA | 15.7% | 13.2% | 78.9% | $301,948 |
| VA | 10.8% | 8.2% | 83.4% | $377,805 |
| USDA | 1.1% | 0.6% | 87.6% | $216,235 |
The average Tennessee home loan in 2025 was $322,100 — 9% below the U.S. average of $352,861, the 24th-largest of 51 jurisdictions. Home purchases accounted for 62.2% of those loans (U.S. 64.2%); cash-out refinances for 19.1% (U.S. 17.1%).
Source: 2025 HMDA originations, FFIEC/CFPB. Approval = originated ÷ (originated + denied).
Tennessee loan limits for 2026
14 of Tennessee's 95 counties are high-cost areas for 2026, with one-unit conforming limits above the $832,750 baseline — highest in Cannon County ($1,029,250), Cheatham County ($1,029,250), Davidson County ($1,029,250). Everywhere else in the state the cap is $832,750, so the same loan amount can be conforming in one county and jumbo in the next. See the full national grid in our FHFA loan limit guide, and if you are over the line, what changes with today’s jumbo pricing.
County limits: FHFA 2026 conforming loan limit list (one-unit properties; two- to four-unit limits are higher).
Cash you'll need to close in Tennessee
Average closing costs in Tennessee are about $5,063 including transfer taxes (No. 16 of 51, highest first). On a home at the median list price of $425,000:
| 20% down | 3% down | |
|---|---|---|
| Down payment | $85,000 | $12,750 |
| Average closing costs | $5,063 | $5,063 |
| Cash to close (estimate) | $90,063 | $17,813 |
Prepaid taxes and insurance are extra. Closing-cost averages by state (source: Bankrate).
Transfer taxes and recording rules in Tennessee
Tennessee charges a realty transfer tax of $0.37 per $100 of the price (0.37%) and a mortgage tax of $0.115 per $100 of the loan, with the first $2,000 exempt — about $343 on a $300,000 mortgage, paid by the borrower. Source: tn.gov
Getting approved in Tennessee
Federal HMDA lending records show Tennessee lenders originated 176,247 home loans in 2025 and denied 52,016 applications — an approval rate near 77.2% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our approval-rate research, and how Tennessee ranks for servicer complaint data (6,759 on record).
Shopping for a loan? See the most active mortgage lenders in Tennessee, ranked by federal HMDA volume.
Down-payment help in Tennessee
You rarely need 20% down. These are the main programs from THDA, Tennessee's housing finance agency; they are offered through participating lenders, usually alongside the agency's own first mortgage.
Great Choice Plus
THDA down-payment assistance paired with a Great Choice first mortgage: up to 5% of the price (maximum $15,000) as a 30-year amortizing second loan, or a deferred 0% second mortgage forgiven after 10 years. Requires a 640 credit score and homebuyer education.
Source: thda.orgHomeownership for Heroes
Eligible military members and veterans can waive the first-time buyer requirement anywhere in Tennessee and receive up to $15,000 or 5% of the price in assistance.
Source: thda.orgChecked against official sources on October 9, 2026. Assistance amounts, income limits and funding change during the year — confirm current terms with THDA or a participating lender.
No state mortgage credit certificate in Tennessee
THDA's homebuyer programs (Great Choice and its down payment assistance) include no MCC. The state-by-state MCC list.
Check current terms at THDA, see how a smaller down payment changes your number with the down-payment amount calculator, or compare down-payment help across the country.
How these numbers are measured
- Freddie Mac PMMS (30- and 15-year): a weekly average of rates offered to borrowers with 20% down and strong credit, published Thursdays; latest week Nov 5, 2026. Points are not reported.
- Optimal Blue OBMMI (FHA, VA, USDA, jumbo): daily averages of rates actually locked, across credit profiles. Points vary by loan.
- APOR (APR benchmark): FFIEC/CFPB's weekly Average Prime Offer Rate, an APR that includes typical points and fees for a prime borrower. Regulators use it to flag higher-priced loans.
- HMDA 2025 (Tennessee vs U.S.): rates, costs, points and down payments on loans that actually closed, reported by lenders to federal regulators. Updated once a year.
- Census ACS 2024 (property tax and insurance): what homeowners with a mortgage in Tennessee reported paying — the median real-estate tax divided by the median home value, and the median insurance premium as a share of value. Updated once a year.
- Interest rate vs APR: the rate sets your payment; the APR adds points and lender fees spread over the loan. Compare APRs on Loan Estimates for the same day and loan type.
Rates and APOR refresh every week; HMDA, loan limits and closing-cost averages refresh when their publishers release new data. Reviewed by our editorial staff. Full sources and formulas: full methodology.
Tennessee mortgage FAQ
What is a good mortgage rate in Tennessee right now?
A 30-year fixed close to the national average of 7.18% (Freddie Mac, week of Nov 5, 2026) is a fair benchmark for a borrower with strong credit and 20% down. In 2025, Tennessee's conventional buyers paid a median 6.50%.
Quotes well above that usually reflect lower credit, a small down payment or lender credits taken in exchange for a higher rate.
Are mortgage rates higher in Tennessee than in other states?
No, if anything slightly lower, once timing and fees are counted. In 2025 HMDA records, Tennessee's median conventional 30-year rate was 6.50%, against 6.50% nationally.
Against the benchmark for each loan's lock week, which counts points and fees, Tennessee loans priced right at it (the 22nd-lowest of all 50 states and the District of Columbia), against 0.02 above nationally.
Rates are set mainly in one national market, so your credit, down payment and loan size matter more.
What are current jumbo mortgage rates in Tennessee?
The national jumbo 30-year average is 7.25% (Optimal Blue). In 2025, Tennessee's jumbo buyers paid a median 6.63%. A loan is jumbo above the $832,750 conforming limit, or above $1,029,250 in Tennessee's highest-cost counties.
Jumbo lenders typically want 10–20% down, a 700+ credit score and 6–12 months of reserves.
Should I choose a 15-year or 30-year mortgage?
On a $340,000 loan (20% down on Tennessee's median list price), a 30-year at 7.18% costs $2,303 a month and a 15-year at 6.57% costs $2,975.
The 15-year saves about $293,705 in interest but needs $672 more a month, so it fits only if that payment is comfortable.
How much does a 1% difference in mortgage rates change my monthly payment?
On a $340,000 loan (20% down on Tennessee's median list price), moving from 7.18% to 8.18% raises the principal-and-interest payment from $2,303 to $2,538, or $234 a month.
Over 30 years that is about $84,354 more in interest, which is why comparing several lenders on the same day matters.
Are mortgage rates different for purchase and refinance loans?
Yes, slightly. In 2025, Tennessee's conventional rate-and-term refinances closed at a median 6.38% and purchases at 6.50%, partly because refinances bunch up when rates dip. Refinances priced 0.05 percentage points below the market benchmark; cash-out refinances usually cost more. Your own pricing depends on credit, loan-to-value and points.
How much is a $400,000 mortgage at 7.18% interest?
About $2,710 a month in principal and interest over 30 years. In Tennessee, a $500,000 home with that loan adds roughly $183 a month in property tax at the 0.44% effective rate, plus homeowners insurance. Over 30 years the loan costs about $575,506 in interest.
How much income do I need to buy a home in Tennessee?
About $111,000 a year for a home at the $425,000 median list price with 20% down, if the full $2,601 monthly payment, including tax and insurance, stays within 28% of gross income.
Smaller down payments add mortgage insurance and raise that figure; existing debts lower what lenders approve.
What down payment assistance is available in Tennessee?
THDA, the state housing finance agency, runs Great Choice Plus and Homeownership for Heroes, offered through participating lenders. Help usually comes as a grant or a deferred or forgivable second loan paired with the agency's first mortgage.
Amounts, income limits and funding change during the year, so confirm current terms with THDA or a participating lender before you apply.
- Freddie Mac — Primary Mortgage Market Survey
- FFIEC / CFPB — Average Prime Offer Rates (APOR)
- FFIEC / CFPB — HMDA data browser (2025 loan-level records)
- Optimal Blue OBMMI via FRED (FHA, VA, USDA, jumbo)
- FHFA — 2026 conforming loan limits by county
- U.S. Census Bureau — 2024 American Community Survey microdata (property tax and homeowners insurance)
- HUD — Handbook 4000.1 (FHA mortgage insurance)
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.