Interest Rate
Average home price

If you’re planning on buying a home in Tennessee, you’ll want to be offered the best mortgage rate possible. Your mortgage rate is dependent upon factors such as your income, how much down payment you can put down, your credit score, and your debt-to-income ratio.

You can secure an optimal mortgage rate in Tennessee by checking your credit before you apply for a home loan, making sure all of your documentation is in order, and getting preapproved by a reputable mortgage lender.

Here’s a quick look at current Tennessee mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.238% 6.309% -0.03%
Conventional 20 year fixed 6.025% 6.109% -0.08%
Conventional 15 year fixed 5.454% 5.577% -0.33%
Conventional 7 year ARM 6.292% 7.25% -0.04%
Conventional 5 year ARM 6.081% 7.374% -0.15%
VA 30 year fixed 5.716% 5.991% Unchanged
VA 15 year fixed 5.188% 5.706% Unchanged
VA 5 year ARM 6.083% 6.874% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Tennessee

Wondering if you should buy a home in Tennessee? This could be a advantageous time to find your perfect home in the Volunteer State. Here’s what you need to know:

Start by choosing where you want to live. Tennessee’s music-loving population now nears 6.5 million people, and as you might expect, plenty live in the beautiful countryside but more than one in four live in the states biggest five cities:

  • Memphis
  • Nashville (state capital)
  • Knoxville
  • Chattanooga
  • Clarksville

Next, calculate how much home you can afford. Tennessee ranks 30th in US homes for sale at average price, and 19th for homes over $1,000,000. Getting preapproved can help you know what your budget is before you go house hunting.

First-time Homebuyers

If you are a first-time home buyer, you may be able to qualify for assistance through a program administered by the Tennessee Housing Development Agency (THDA).

The Great Choice Home Loan program applies to 30 year conventional, FHA, VA or USDA loans, with 3%-3.5% down payments (down payment assistance is available.)

Borrower requirements for THDA loans include:

  • 640 minimum credit score
  • Completion of a homebuyer education course
  • THDA income limit compliance (varies based on county)
  • THDA purchase price limits (varies based on county)

Refinancing in Tennessee

If you need to refinance a home in Tennessee to take advantage of better Tennessee mortgage rates, you can do any of the following:

  • Refinance your loan at a lower interest rate
  • Refinance your loan for an extended term
  • Refinance your loan to access the equity as cash
  • Refinance your loan to eliminate private mortgage insurance (PMI)

It’s often possible to qualify for a streamlined refinance depending on your type of loan. Ask your lender for more information.


Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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