Updated: December 13, 2024
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Today's 30-year mortgage rate in Tennessee is 6.40%, lower than the national average of 6.83%. Tennessee homebuyers can access programs like Great Choice Home Loans for First-Time Homebuyers and Homeownership for Heroes, which can help reduce mortgage costs.
MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot of rates to analyze rate information for Tennessee. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless specifically noted otherwise, rates featured in the content are annual percentage rates (APRs).
This data was last updated in December 2024.
In December 2024, Tennessee's average APR for a 30-year fixed-rate mortgage decreased to 6.40% from 6.66% in November. For a $250,000 loan with a 20% down payment, this rate decrease stands to save you around $5,247 in total cost, excluding property taxes and HOA fees.
Rates shift frequently due to changing economic conditions and Federal Reserve actions. The line chart below shows the recent month-to-month changes in mortgage rates.
Even small changes in mortgage rates can significantly impact your finances. Understanding the current mortgage rates in Tennessee helps you budget for a home purchase.
Understanding today's mortgage interest rates in Tennessee amid shifts in the housing market can benefit first-time buyers and those looking to refinance.
Knowing current mortgage rates helps first-time homebuyers gauge what rates to expect and spot competitive offers.
Homeowners may benefit from lower payments and decide to pursue a mortgage refinance if the rates are favorable.
In Tennessee, the current mortgage rate for a 30-year fixed loan is 6.40%, while the refinance rate is slightly higher at 6.55%. This difference highlights how purchase and refinance rates can vary.
A 30-year fixed-rate mortgage typically has a higher interest rate than a 15-year one. Lenders take on more risk with longer terms due to interest rate fluctuations and the potential for borrower default.
Consider using a mortgage calculator to decide between different mortgage types in Tennessee. It can help you understand how different rates affect your monthly payments and help you make an informed decision.
| 5.86% | 6.06% |
The interest rate is how much you pay each year to borrow money for a mortgage. The average interest rate for a 30-year fixed mortgage in Tennessee is 6.32%.
An APR (annual percentage rate) includes your interest rate plus fees like mortgage points. For a 30-year fixed mortgage in Tennessee, the average APR is 6.40%, showing the total loan cost each year.
In Tennessee, if you have a credit score of 740 or more and make a 5% to 20% down payment, the average APR for a 30-year fixed mortgage is 6.71%. With a credit score below 680, the rate goes up to 7.50%.
Your credit score influences the mortgage rates you might get. Check out the interactive table below for the rates you could qualify for based on your credit score and down payment.
| 10-year Fixed | 5.66% |
| 15-year Fixed | 6.02% |
| 20-year Fixed | 6.99% |
| 30-year Fixed | 6.71% |
| 5-year ARM | 7.65% |
| 7-year ARM | 8.36% |
In December 2024, VA loans have the lowest average APR of 6.17% for 30-year fixed-rate mortgages in Tennessee. Knowing the differences among mortgage options can impact your budget over the life of your loan. Below, you'll find a rundown of mortgage types in Tennessee.
Mortgage Type | Definition | Impact on Rates | 30-Year Rates in Tennessee |
|---|---|---|---|
Conventional Loans | Conventional loans in Tennessee are not insured by any government agency. | Mortgage rates for conventional loans are influenced by credit score and down payment. | 6.40% |
FHA Loans | FHA loans in Tennessee are backed by the Federal Housing Administration, making them less risky for lenders. | FHA loans feature competitive rates due to government backing, though insurance premiums may apply. | 8.04% |
VA Loans | VA loans in Tennessee are guaranteed by the Department of Veterans Affairs for eligible military members. | VA loans offer competitive rates due to government backing and no down payment requirement. | 6.17% |
USDA Loans | USDA loans in Tennessee are for rural home buyers and backed by the United States Department of Agriculture. | USDA loans provide favorable rates, but are limited to certain rural and suburban areas. | currently unavailable |
Jumbo Loans | Jumbo loans in Tennessee exceed conventional loan limits set by Fannie Mae and Freddie Mac. | Jumbo loans typically have higher rates because they involve more risk for lenders. | 6.69% |
Mortgage rates fall into fixed and adjustable types.
As of December 2024, Tennessee's average APRs are 6.40% for a 30-year fixed loan and 7.67% for a seven-year ARM.
New American, Better and Bank of America are strong mortgage options in Tennessee, selected for their state presence, Better Business Bureau (BBB) accreditation and homeowner assistance programs. However, this list isn’t exhaustive, and other lenders may better suit your needs.
Mortgage rates vary by lender, as each offers different products and terms. Compare rates from multiple lenders to secure the best deal.
New American has diverse mortgage options, including conventional and FHA loans. The minimum credit score for an FHA loan is 580, while jumbo loans require a score of 680. Conventional loans start with a 3% down payment, and FHA loans require 3.5% to 10%. VA loans have no down payment for eligible veterans and servicemembers.
Phone and email support is available Monday to Friday from 8 a.m. to 9 p.m. CT and Saturdays from 10 a.m. to 2 p.m. CT. New American also offers homeowner assistance programs to help clients navigate homeownership challenges.
Pros
Cons
Better is an online-only mortgage lender offering various options, including fixed-rate, adjustable-rate and jumbo loans. Jumbo loans require a 700 credit score, while conventional loans are available with a 620 score. FHA loans are accessible with a 580 score.
Down payments for non-FHA loans range from 3% to 5%. A 10% down payment is needed for credit scores below 580, while FHA loans require 3.5% with a 580 score. If a co-borrower is involved but not living on the property, the down payment increases to 25%.
Customer service via phone and email is available Monday through Sunday from 8 a.m. to 9 p.m. ET. To support your homeownership journey, the lender offers the Better Real Estate discount through its Homeowners Assistance Program.
Pros
Cons
Bank of America provides a range of mortgage products, including fixed-rate, adjustable-rate, jumbo, FHA and VA loans. The Affordable Loan Solution is a notable option, requiring only a 3% down payment. VA loans, available to veterans, require no down payment. The minimum credit scores for these loans are not publicly disclosed, so contact the bank for specific details.
Customer service is available Monday through Friday, 8 a.m. to 10 p.m. ET, and Saturdays until 6:30 p.m. ET, both online and over the phone or in person. Bank of America offers programs like America's Home Grant® and Down Payment Grant to help borrowers with down payments and other homebuying costs.
Pros
Cons
Homeownership has hidden costs that might impact your budget. You can get help from the Tennessee Housing Development Agency, which offers different mortgage programs.
Program | Description |
|---|---|
Offers a steady 30-year loan to first-time buyers with middle income. It's built for stability, with no surprise interest rate hikes, manageable monthly payments and down payment relief. Qualifying starts with a 640 credit score, but there's help if your score is lower. It even supports manufactured homes off-site, easing upfront financial worries. | |
Supports Tennessee's community heroes: those in the military, law enforcement, EMTs and firefighters. It offers a reduced interest rate of 0.5%, bypasses the first-time buyer rule and offers up to 100% financing. Eligible heroes with at least a 640 credit score also gain access to down payment assistance. | |
Welcomes first-time and previous homeowners. You qualify if you buy in certain counties, serve in the military or haven't owned a home for three years. This program promises the same 30-year term benefits, fixed rates and down payment aid as the first-timer's loan. You can access up to 96.5% financing with a 640 credit score. | |
Can be accessed by those with a Great Choice Home Loan. The program offers a deferred $6,000 loan with no interest, which you can pay at the term's end or after the sale of your house. It also provides a loan worth 6% of your purchase price, repaid over 30 years. A quick education course is required to qualify. |
Understanding today's mortgage rates is a common concern for homebuyers. We addressed your questions to help you make informed mortgage decisions when buying a home in Tennessee.
Current average APRs in Tennessee can vary based on the loan type among other factors. As of December 2024, for instance, a 30-year fixed conforming loan has an average APR of 6.40%, whereas a 30-year fixed-rate FHA loan, which is a government loan, has an average APR of 8.04%.
The current average APRs for mortgages in Tennessee can sometimes be slightly different from the national averages. For example, a 15-year fixed rate mortgage in Tennessee has an average APR of 5.87% compared to the national average of 6.12% in December 2024.
Your credit score significantly impacts the mortgage rates you can qualify for in Tennessee. A higher credit score generally secures lower mortgage rates, while a lower credit score may result in higher rates.
Yes, there are several mortgage programs available in Tennessee such as Great Choice Home Loans for First-Time Homebuyers, Homeownership for Heroes and programs offering Down Payment Assistance to eligible buyers.
To secure the best possible mortgage rate in Tennessee, consider a larger down payment, maintain a strong credit score and shop around to compare offers from multiple lenders for competitive rates.
Today's average refinance rates in Tennessee as of December 2024 are 6.55% for a 30-year fixed and 6% for a 15-year fixed loan.
You can use a mortgage calculator for Tennessee to estimate your monthly mortgage payments by inputting the loan amount, term, interest rate and other relevant details.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
