Mortgage Calculator in Tennessee (November 2024)

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Updated: November 11, 2024

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In Tennessee, Benton County has the lowest median monthly mortgage payment at $830, while Williamson County tops the list with $5,230. These differences in mortgage payments can significantly impact your short-term budget and long-term financial health, influencing your ability to save and invest for the future.

Using MoneyGeek's mortgage calculator in Tennessee allows you to estimate your monthly mortgage payment, determine which loan term suits your financial situation better, and see how much interest you pay over your loan's lifetime. Input your purchase details into the calculator to clearly understand your financial commitment.

Mortgage Calculator

Simply estimate your Tennessee loan payments, taxes and PMI.

Updated: Sep 4, 2024

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Get personalized mortgage rates from Tennessee.

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Key Takeaways

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In Tennessee, Benton County has the lowest median monthly mortgage payment at $830, while Williamson County has the highest at $5,230 as of March 2024.

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Using a mortgage calculator can help you find a monthly mortgage payment that fits your budget and estimate total interest over the loan's life.

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The average APR for a 30-year mortgage in Tennessee is 6.7%, and for a 15-year mortgage, it is 6%.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Florida. 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 otherwise stated, all rates are annual percentage rates (APRs).

See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.

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Interest rate data was last updated in October 2024.

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SEE MORTGAGE CALCULATORS IN NEIGHBORING STATES

How to Use Our Tennessee Mortgage Calculator

MoneyGeek's mortgage calculator in Tennessee can help you calculate your monthly mortgage payments and determine your mortgage's affordability. You'll also understand your amortization schedule, providing a clear financial path ahead.

Calculate Your Monthly Mortgage Payment

Understanding your monthly mortgage payment involves several variables, including the home's sale price and the down payment you provide. Let's explore how to use Tennessee's mortgage calculator to get a clear picture of your potential expenses.

  1. 1
    Home Price

    The home price directly influences your monthly mortgage payment in Tennessee. A lower home price in Benton County, at a median of $141,380, means lower monthly payments than in Williamson County, where the median is $895,960, according to the National Association of Realtors.

  2. 2
    Down Payment

    The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Tennessee's median down payment is $54,000, according to ATTOM data from June 2024.

  3. 3
    Annual Percentage Rate (APR)

    Your Annual Percentage Rate (APR) impacts your monthly mortgage payment, with a lower APR resulting in lower payments. The current mortgage rates in Tennessee change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 6.0%, and for a 30-year fixed mortgage, it's 6.7%.

  4. 4
    Loan Terms

    Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.

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SAMPLE MONTHLY PAYMENT CALCULATION IN FLORIDA

Using the mortgage calculator in Tennessee, you can see that the monthly payment for a 30-year fixed rate mortgage after a 20% down payment on a $275,000 house is $1,420. This figure does not account for additional costs like HOA fees and property tax.

Choosing a 15-year repayment term for your home loan increases your monthly payment to $1,856, impacting your budget in the short term. Yet, this decision results in a total interest saving of $176,893 over the duration of the loan, presenting a significant benefit for your long-term financial health.

Determine Your Mortgage's Affordability

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Buying a home is one of the most significant expenses you'll encounter, and your mortgage payments will likely consume a large portion of your monthly income. Understanding your mortgage's affordability is crucial for managing your finances effectively. MoneyGeek's mortgage calculator for affordability allows you to quickly assess this by inputting your monthly income and other debts, such as car loans and student loans.

The calculator also reveals your debt-to-income ratio, a critical metric for borrowers. This ratio helps you understand how much of your income is dedicated to debt payments, which is important for anyone planning to secure a mortgage. According to Experian, the average debt in Tennessee is $93,821, translating to an average monthly debt of $7,818.

See Your Amortization Schedule

Mortgage amortization is the process of paying off a loan over time through regular payments. Key terms are:

  • Principal: The loan amount you borrow. Understanding this helps you see how much you owe.
  • Interest: The cost of borrowing the principal. Knowing this shows the total cost of your loan.

MoneyGeek's mortgage calculator allows you to see your amortization schedule and estimate the total interest you'll pay over the life of your loan in Tennessee. You can also see when your monthly payments begin to go more toward your principal versus your interest, helping you understand your payment allocation over time.

Additional Mortgage Fees in Tennessee

Aside from the loan amount and interest rate, home buyers need to consider other standard mortgage fees that could impact your budget. For example, mortgage insurance and HOA fees could increase your monthly payment. Property taxes and homeowners insurance are other costs to keep in mind.

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    Homeowners Insurance

    Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Tennessee is $2,578 per year.

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    Property Tax

    Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Tennessee's effective property tax rate is 0.67%, ranking it 37th in the nation.

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    HOA Fees

    HOA fees are payments to homeowners associations for property management, maintenance, and community amenities. These fees are typically paid monthly or annually.

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    Private Mortgage Insurance

    Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.

How Much Is Private Mortgage Insurance in Tennessee?

The average APR for a 30-year fixed loan in Tennessee is 6.7%, and for a 15-year fixed loan, it's 6%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 per month for a 30-year fixed rate loan. The cost of private mortgage insurance becomes $115 if they opt for a 15-year loan instead.

MoneyGeek's Tennessee mortgage calculator allows you to see your amortization schedule and determine when you can stop paying for PMI:

  1. 1
    Calculate your monthly mortgage payment

    Input the necessary information, such as the home's price, down payment, and mortgage rate in Tennessee. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank but know that you'll still have to pay for these. Run the calculator and get your total monthly payment.

  2. 2
    Calculate for your target equity

    You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.

  3. 3
    Determine the remaining equity required

    Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.

  4. 4
    Establish a timeline

    Go to the third tab of the mortgage calculator. Move the slider until the principal paid exceeds your remaining equity required — that'll be the year you can stop paying for PMI.

Private Mortgage Insurance Calculator

Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

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WHEN CAN YOU CANCEL YOUR PMI?

Let's say you're a homeowner in Tennessee who put an 8% down payment on a $350,000 property. With a 6.7% APR on a 30-year fixed-rate loan, your monthly mortgage payment is $2,078. You need 20% equity to cancel PMI, equivalent to $70,000.

Since your down payment was $28,000, you must accumulate an additional $42,000. By making consistent payments, you can reach this equity milestone and request PMI cancellation before the end of Year 11, assuming your home's value does not change.

How to Lower Your Monthly Mortgage Payment in Tennessee

Your mortgage is probably the biggest expense you have each month. For a $225,000 loan in Tennessee at 6.7% interest, you'll pay $1,420 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,383. That $36 difference in monthly payment adds up — over a 30-year fixed-rate mortgage, you'll save $13,064 in total interest.

This example highlights the value of finding ways to lower monthly mortgage payments. Here are some strategies to consider:

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    Improve your credit score

    Your credit score affects your mortgage. In Tennessee, a 30-year fixed rate mortgage with a down payment between 5% to 20% has an average APR of 7.0% if your credit score is above 740. If your credit score is below 680, the APR rises to 8.0%. This increase in APR raises your monthly mortgage payments from $1,464 to $1,614.

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    Save for a bigger down payment

    Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Tennessee, putting 8% down makes your APR 7.3%, resulting in a monthly mortgage of $1,734. Increasing your down payment to 25% puts your APR at 6.9% and a monthly mortgage of $1,358.

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    Choose a longer loan term

    A longer loan term affects your monthly mortgage payment. A 15-year fixed rate mortgage in Tennessee has an APR of 6%. A 20% down payment makes your monthly mortgage payment $1,856. Compare this to $1,420, which you'll have to pay each month if you change loan terms to 30 years, even if your APR increases to 6.7%.

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    Explore homeownership assistance programs

    You can find homeowners assistance programs in Tennessee that may help with your mortgage costs. Institutions like the Tennessee Housing Development Agency offer various forms of assistance to eligible homeowners.

FAQ: Mortgage Calculations in Tennessee

Using a mortgage calculator can raise questions for potential borrowers, especially with the various factors affecting mortgage costs in Tennessee. We've addressed commonly asked questions to help you better understand your mortgage options.

How much mortgage can I afford in Tennessee?
What is the average mortgage debt in Tennessee?
How much down payment do I need to purchase a house in Tennessee?
Do you really need private mortgage insurance in Tennessee?
What's the effective tax rate in Tennessee?
What is the median home price in Tennessee?

About Zachary Romeo, CBCA

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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.

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