Updated: November 21, 2024
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Today's 30-year mortgage rate in Tennessee is 6.66%, lower than the national average of 7.15%. 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 November 2024.
In November 2024, Tennessee's average APR for a 30-year fixed-rate mortgage increased to 6.66% from 5.94% in October. For a $250,000 loan with a 20% down payment, this rate hike could cost you around $37,167 more in total interest, 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.
First-time homebuyers
Knowing current mortgage rates helps first-time homebuyers gauge what rates to expect and spot competitive offers.
Homeowners with mortgages
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 6.66%, while the refinance rate is slightly lower at 6.49%. 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.
| 5.52% | 5.73% |
An 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 6.58%.
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 6.66%, showing the total loan cost each year.
In Tennessee, if you have a credit score of 740 or higher and make a 5% to 20% down payment, the average APR for a 30-year fixed mortgage is 7%. With a credit score below 680, the rate goes up to 8.04%.
Your credit score influences the mortgage rates you might get. Check out the 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 | 6.15% |
| 20-year Fixed | 6.99% |
| 30-year Fixed | 7.00% |
| 5-year ARM | 7.75% |
| 7-year ARM | 8.36% |
In November 2024, VA loans have the lowest average APR of 6.37% 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 aren't insured by government agencies and are common with borrowers. | Your credit score and down payment influence the rates on a conventional loan. | 6.66% |
FHA loans | FHA loans are insured by the Federal Housing Administration and suitable for low-to-moderate-income borrowers. | FHA loans often have lower requirements, resulting in potentially higher rates. | 7.89% |
VA loans | VA loans are backed by the Department of Veterans Affairs and offered to military service members. | VA loans typically offer competitive rates due to government backing. | 6.37% |
USDA loans | USDA loans are backed by the U.S. Department of Agriculture and targeted at rural home buyers. | USDA loans can offer low rates due to government backing and location-based incentives. | currently unavailable |
Jumbo loans | Jumbo loans exceed conforming loan limits, typically used for high-cost area properties. | Jumbo loans usually have higher rates due to the increased lending risk. | 6.81% |
Mortgage rates fall into fixed and adjustable types.
As of November 2024, Tennessee's average APRs are 6.66% for a 30-year fixed loan and 7.35% 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 vary by loan type. As of November 2024, a 30-year fixed conforming loan has an average APR of 6.66%, and a seven-year ARM jumbo loan averages 7.16%.
Tennessee's mortgage rates are competitively priced with national averages. As of November 2024, a 30-year fixed conforming loan has a state average APR of 6.66% compared to the national average of 7.15%.
Your credit score significantly affects the rates you receive. Higher scores often secure lower mortgage rates, while lower scores may result in higher rates.
Tennessee offers several mortgage programs such as Great Choice Home Loans for First-Time Homebuyers, Homeownership for Heroes, and Down Payment Assistance.
To secure the best mortgage rate, improve your credit score, compare rates from different lenders and make a larger down payment.
Today's average refinance rates in Tennessee as of November 2024 are 6.49% for a 30-year fixed and 5.9% for a 15-year fixed loan.
To calculate your mortgage payments, use a mortgage calculator for Tennessee, which can help you estimate monthly payments based on factors such as home price, down payment and loan term.
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.
