Home Equity Loan Rates in Tennessee (January 2025)

A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Tennessee's home equity loan rates are slightly higher than national averages — 7.8% APR for a 10-year term compared to 7.7% nationally, and 8.1% APR for a 15-year term compared to 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Tennessee, including city-specific rates, top lenders, and tips on securing the best rates for using your home's equity.

The current average APR for a 15-year home equity loan in Tennessee is 8.1%, though various factors can influence what lenders offer. For instance, a strong credit score might secure you a lower APR, while a higher loan amount could lead to a higher rate. Repayment terms are another key consideration. Compare how these factors affect current home equity loan rates in Tennessee across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these fluctuations can save you money by reducing the amount you pay in interest over the life of the loan. If you have high-interest debts, securing a home equity loan at a lower rate can also help consolidate those debts and lower your overall interest payments.

For instance, consider a $50,000 home equity loan. A 15-year loan with an 8.1% APR results in a monthly payment of $481 and a total interest of $36,529. In comparison, a 10-year loan with a 7.8% APR has a monthly payment of $601 and a total interest of $22,164.

The rate you qualify for depends on your loan-to-value ratio, which is how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For example, if your home is valued at $300,000 and you owe $240,000 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio means greater potential risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Tennessee with an LTV ratio of 80% is 8%. It's 8.3% for an LTV ratio of 90%. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Tennessee. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Differences in property taxes or local fees can also influence rates, as these affect overall borrowing costs.

In Tennessee, Springfield has an average APR of 5.6%, while Fairview has an average APR of 10.3%. Below is a table showing the average home equity loan rates for different terms across Tennessee cities.

Home equity loan rates in Tennessee vary widely depending on the lender's policies and market strategies. For instance, United Community Bank offers the lowest average APR at 5.6%, while Fifth Third Bank has the highest at 10.3%.

Comparing rates and terms from different lenders is crucial to securing the lowest home equity loan rates. Explore the interactive table below to see which lenders offer the best rates in your city.

Getting the best possible home equity interest rates can significantly enhance your borrowing experience by reducing monthly payments and overall costs. For instance, securing a lower rate may allow you to allocate more funds towards other financial goals. To achieve the best home equity loan rates in Tennessee, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates in Tennessee, offering clear and reliable insights for homeowners. By providing precise information, MoneyGeek helps you better understand your financial options.