Home Equity Loan Rates in Tennessee

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 (7.7% nationally) and 8.1% APR for a 15-year term (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%, but several factors might affect what lenders offer. For instance, a higher credit score often results in a lower APR, while a larger loan amount could lead to a higher rate. Repayment terms are another consideration that can influence the rate you receive. Explore the table below to compare the average APRs of home equity loans in Tennessee across different loan terms.

Interest rates for a home equity loan change daily. Staying informed about these rates can help you pay less in interest over the loan's life and make financing renovations more affordable. For example, a 15-year home equity loan with an 8.1% APR results in a monthly payment of $481 and a total interest of $36,529. In contrast, 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 (LTV ratio), which measures 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 instance, if your home is valued at $300,000 and your mortgage balance is $240,000, your LTV ratio is 80%.

A higher LTV ratio presents a greater risk to lenders, resulting in higher rates. In Tennessee, the average APR for a 15-year equity loan with an 80% LTV ratio is 8%, compared to 8.4% for a 90% LTV ratio. Refer to the table to see what rates you might qualify for based on your LTV ratio, and how it impacts average home equity loan rates.

Average APRs also vary between cities in Tennessee. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. Additionally, cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses.

In Tennessee, Thompson's Station has an average APR of 5.6%, while Livingston has an average APR of 13.3%. The table below shows the average home equity loan rates across Tennessee cities for different terms.

Home equity loan rates in Tennessee can differ significantly between lenders, driven by individual policies and market strategies. For instance, United Community Bank offers the lowest average APR at 5.6%, while First National Bank of Tennessee has the highest at 13.3%.

Comparing rates and terms from various lenders is essential to securing the lowest home equity loan rates. Check out the interactive table 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.