Updated: January 9, 2025
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The current mortgage refinance rates in Tennessee for a 15-year fixed loan stand at 6.00%, while the 30-year fixed rate is 6.55%. In comparison, the national average refinance rates are higher at 6.12% and 7.08%, respectively.
Our comprehensive guide provides the knowledge you need to make informed refinancing decisions in Tennessee. With sections dedicated to current rates, trends and practical tips, you get actionable insights tailored to your financial goals and circumstances.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot 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 noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in Tennessee is 6.55%. According to Experian, the average mortgage debt in Tennessee is $208,122 as of September 2023. Refinancing your mortgage can help manage debt by potentially lowering your monthly payments and the total interest paid over the life of the loan.
Refinancing could offer significant savings if your current mortgage rate is higher than 6.55%. Below are the current refinance rates in Tennessee to guide your decision-making.
| 15-Year Fixed | 5.89% | 6.00% |
| 30-Year Fixed | 6.48% | 6.55% |
In the latest month, trends in Tennessee showed a slight increase for both 15-year and 30-year refinance rates. This upward shift may impact decisions for those considering refinancing their loans.
Interest rates often rise due to the US Federal Reserve's monetary policy, inflation and economic growth. These factors also influence refinance rate trends in Tennessee, affecting how consumers manage their finances. Understanding these dynamics helps anticipate rate changes.
Refinancing your mortgage in Tennessee can offer benefits like reduced interest rates or lower monthly payments. Let's explore the steps to ensure you feel confident and informed.
Credit scores affect mortgage rates; a higher score can secure better rates. If your score is low, consider paying debt or disputing inaccuracies. The average credit score in Tennessee is 705.
Compare your current mortgage terms with today's rates: 30-year fixed at 6.55% and 15-year fixed at 6.00% in Tennessee. If these are lower, refinancing might be beneficial. Consider your home's future, as well; staying longer can justify refinancing costs.
Organize documents like pay stubs, tax returns and bank statements to streamline refinancing. Ensure your current mortgage documents are also in order.
Compare lenders to find the best terms. Look for competitive interest rates, low fees and good customer service to secure the most favorable refinancing deal.
Be aware of closing costs, appraisal fees and other expenses. In Tennessee, average closing costs are $3,090, according to the National Association of Realtors.
Submit your application with all required documents. Ensure accuracy to avoid delays. Pre-approval can simplify the process and give you a competitive edge.
Once approved, lock in your rate to avoid market fluctuations. Timing is crucial; lock rates when they are favorable to secure better terms.
Review and sign the final documents. Ensure all terms match your expectations. Scheduling the closing at a convenient time can reduce stress.
Begin payments as outlined in your new loan agreement. Setting up automatic payments can help avoid missed deadlines and maintain a good credit score.
Regularly assess market rates and your financial situation to help seize future opportunities. If conditions improve, consider refinancing again.
How soon you can refinance a mortgage in Tennessee depends on your loan type. You can usually refinance a conventional loan immediately, but a cash-out refinance often requires a six-month seasoning period. USDA loans generally require a 12-month waiting period.
The refinance rate in November was lower than the previous month, making it a good example of when to refinance. However, refinancing comes with additional closing costs that can take years to recover. While you could refinance a mortgage within a year, it's typically not worth it unless there's a drastic reduction in interest rates.
Refinancing your mortgage in Tennessee can reduce your interest rates and monthly payments. Yet, watch out for closing costs that might negate these savings. Understanding when to refinance a mortgage in Tennessee ensures you maximize financial benefits. Let's dive into scenarios where refinancing could be a wise choice.
Refinancing when interest rates are lower can reduce monthly payments and total interest paid. To find the best rates, consult local lenders and credit unions for competitive offers. This approach ensures you capitalize on favorable market conditions.
High home value can increase home equity, making refinancing attractive. Enhancing curb appeal or renovating can boost value. With Tennessee's average home value at $326,084, leveraging equity can lead to better loan terms.
A higher credit score can qualify you for lower interest rates. Paying bills on time and reducing debt can improve your score, making refinancing a smart move to lower monthly payments.
Refinancing to a shorter loan term can save on interest and build equity faster. Benefits include paying off the mortgage sooner and reducing overall interest costs.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage offers stability. A fixed rate protects against market fluctuations, providing predictable payments and long-term financial planning.
Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score affects the rates you qualify for in Tennessee. For example, the current average refinance rate in Tennessee for a 30-year fixed loan with a loan-to-value ratio of 80% or lower is 6.97% for scores between 680 and 740, compared to 6.55% for scores above 740. Explore the table below for more details.
| 5.82% | 6.32% |
Loan type is another factor affecting the rates you qualify for in Tennessee. For example, the current average refinance rates in Tennessee are 6.55% for a 30-year fixed loan and 8.02% for a 30-year FHA. The table below shows average APRs for different loan types in Tennessee.
| 6.09% | 6.21% |
This section addresses the most commonly asked questions about refinance rates in Tennessee, providing clear and factual insights to help homeowners be informed and empowered in their financial journey.
Refinancing your mortgage might be a good idea if you can secure a lower interest rate, reduce your monthly payments or change the loan term to better fit your financial goals. However, consider the closing costs and how long you plan to stay in your home to determine if refinancing is worthwhile.
To get the best mortgage refinance rate, improve your credit score. Additionally, consider paying your mortgage to lower your loan-to-value ratio and increase your chances of securing a better rate.
The pros of refinancing include potentially lower interest rates, reduced monthly payments or the ability to tap into home equity. On the downside, refinancing may involve closing fees and could extend the loan term, increasing the total interest paid over time.
The cost to refinance a mortgage typically ranges from 2% to 5% of the loan amount. These costs can include application fees, appraisal fees and closing costs, which should be weighed against the potential savings from a lower interest rate.
The current average refinance rates in Tennessee are 6.00% for a 15-year fixed-rate loan and 6.55% for a 30-year fixed-rate loan. Rates in Nashville are likely to mirror state averages, but the rate you qualify for may vary based on factors such as credit score and loan-to-value ratio.
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.
